E303lect22F09

E303lect22F09 - Lecture 22 October 14, 2009 Reading: Baye...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Lecture 22 October 14, 2009 Reading: Baye p. 85-90. Problem #6 posted. Due Monday. REVIEW___________________________________________________: III. Quantitative Demand Analysis B. Other Demand Elasticities 3. Advertising Elasticity PREVIEW_______________________________________________ C Elasticities and Demand Functions 1. Elasticity Linear Demand Estimates . 2. Logarithmic demand . LECTURE_________________________________________________ C Elasticities and Demand Functions 1. Elasticity Linear Demand Estimates . Given a demand curve, you can calculate point price elasticity estimates and discuss the relationship between those elements of demand you can control, and those that you cannot. Example Suppose that the demand function for Sorby Flash drives is of the form Q x = 600 - 40P x + .2P y + 2I Where Q x = Hundreds of Sorby Flash drives sold in the U.S. per week, P x = the price of a Flash drive....
View Full Document

This note was uploaded on 04/12/2010 for the course ECON 303 taught by Professor Shrestha during the Fall '08 term at VCU.

Page1 / 3

E303lect22F09 - Lecture 22 October 14, 2009 Reading: Baye...

This preview shows document pages 1 - 2. Sign up to view the full document.

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