Febuary 13 - Today's Outline Refresher Microeconomics...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Microeconomics Principles February 13, 2008 Demand Elasticity Today’s Outline Refresher Measurements of Demand Elasticity z Chapt. 6 106-114 Demand Elasticity WHAT? There is more to learn about Demand! If the price of a good rises, what will happen to the quantity demanded by consumers? Law of Demand the quantity demanded of a good falls when the price of that good rises , other things being equal (I.e. ceteris parabis) Two Ideas Change in Quantity Demanded z Move along curve z Change in Quantity Demanded in response to change in Price Change in Demand z Shift curve z Change in Demand due to change in one of the ‘all else equal’ factors z Ex: taste, preference, income, etc. Let’s look further Law of Demand tells us the direction that quantity demanded changes with a price change. BUT it doesn’t tell us by how much will it change!
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 We’ve been making an assumption…. D D Price Elasticity of Demand (E d ) Responsiveness of quantity demand to changes in price.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This homework help was uploaded on 04/18/2008 for the course PHY 121 taught by Professor Smith during the Spring '08 term at University of Maine Orono .

Page1 / 4

Febuary 13 - Today's Outline Refresher Microeconomics...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online