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Unformatted text preview: unitary price elasticity . That would make the demand for paint in this example elastic for the change in demand changed substantially to the change in price. Now the difference in elastic and inelastic is the difference in the amount demanded being substantial or not. Substantial is very subjective. What I find to be a substantial amount my neighbor may not find to be a considerable amount at all. It is all relative depending on circumstances. However I feel a 43% decrease in demand would be considered substantial by most peoples calculations and this is why I decided this example is a good example of demand elasticity. Microeconomics Unit 2 Individual Project 3 References Das, S. (2005). The concept of elasticity in economics. Retrieved from http://www.nvcc.edu/home/sdas/elasticity/meaning.htm Mankiw, N. (2008). Principals of Economics (5 th ed.). Mason, OH: South-Western Cengage Learning...
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This note was uploaded on 04/02/2011 for the course ECON 220 taught by Professor Theresiaa.wansi during the Fall '10 term at American InterContinental University.
- Fall '10