MicroAssignment 297

MicroAssignment 297 - Professor Koeller Mgt 244 Assignment...

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Professor Koeller Mgt 244 Assignment 2 What is the own-price elasticity of demand? Own-price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price of the good or service. While considering this, all other factors must be held constant. In other words, own-price elasticity is the responsiveness of the consumers to a change in price. If the own-price elasticity is less than -1, it shows that the market is elastic or responsive to a change in price. If the own-price elasticity is greater than -1, it shows that the market is inelastic or not responsive to a change in price. If own- price elasticity of demand is equal to -1, it shows that the market is unitarily elastic meaning that the percentage change in price is equal to the percentage change in quantity demanded. How does time impact the elasticity of demand?
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This note was uploaded on 09/01/2008 for the course MGT 244 taught by Professor Guarino during the Fall '07 term at Stevens.

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MicroAssignment 297 - Professor Koeller Mgt 244 Assignment...

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