Lecture 1Plan for Review Session1. Overview of Key ConceptsElti itElasticitySupply and Demand FunctionsTaxesProducer RevenueInternational TradeTrade barriersEfficiency/welfareExternalitiesEfficiency/welfareCorrective mechanisms2. Questions2
Lecture 1ElasticityGeneral concept:Anelasticityis a measure of the percent change in onething in response to a particular percent change insomething elsesomething else.Examples:(O)ili if dd (l )(Own‐)price elasticity of demand (supply)Cross‐price elasticity of demand (supply)Income elasticity of demand3
This preview has intentionally blurred sections.
Sign up to view the full version.