Lecture 2-24

Lecture 2-24 - Lecture 2/24/09 Midterm 1 Information: 370...

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P Q Elastic 11 P Q Unit Elastic Point Inelastic 11 Ed > 1 Elastic Ed < 1 Inelastic Lecture 2/24/09 Midterm 1 Information: 370 took the exam Mean = 79.7 Median = 82 Mode = 94 High = 100 (18) Low = 33 (1) Advisory Curve A 94-100 AB 89-94 B 80-89 BC 74-80 C 60-74 D/F 0-60 (if 53 or below, see professor) Elasticity: responsiveness of one variable to changes in another variable (measured using percentage changes) Elasticity = % change in one variable/% change in another variable Four types of elasticity: Price Elasticity of Demand E = % change in Qd/% change in P
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Cross-Price Elasticity of Demand (Exy) Exy = % change in Qdx/% change in Py *Substitutes and complements Income Elasticity of Demand (Ei) Ei = % change in Qd/% change in income *Normal and inferior goods Price Elasticity of Supply E = % change in Qs/% change in P Price Elasticity of Demand = % change in Qd/% change in P Since demand is downward sloping, elasticity of demand is negative (absolute value given is a positive number)
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This note was uploaded on 04/06/2009 for the course ECON 101 taught by Professor Hansen during the Spring '07 term at Wisconsin.

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Lecture 2-24 - Lecture 2/24/09 Midterm 1 Information: 370...

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