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ec-21 - b Percent change in Quantity relative to percent...

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10/7/2008 I. Demand Elasticity a. Price (of the good) i. How much does D for bottled water change when the P of bottled water changes b. Cross-Price i. Water when P of juice changes c. Income II. Supply Elasticity a. Price III. Price Elasticity of Demand (Ed) a. The responsiveness of Qd (consumption) to a price change
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Unformatted text preview: b. Percent change in Quantity relative to percent change in Price c. ED= d. Given a price ∆, consumption changes i. Law of Demand e. Elasticity tells HOW BIG the response is f. Calculation i. Example: a. NOTE: no unit→ ignore them IV.Ed Example zsxz...
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