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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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This note was uploaded on 05/12/2011 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.
- Spring '07