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Unformatted text preview: 1. Binding (i.e., effective) 2. Non-binding (i.e., ineffective) 3. Examples D. Elasticity 1. Motivation 2. Price elasticity of demand a. Definition b. Measure i. Elastic ii. Inelastic iii. Unit elastic c. Determinants i. Number and availability of substitutes ii. Necessity or luxury iii. Proportion of budget spent on good iv. Time III. NEXT TIME A. Finish Chapter 7: Describing Supply and Demand: Elasticities...
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- Spring '07