econ101w0710 - Introductory Economics Economics 101-300...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
(c) Sherrie A. Kossoudji Introductory Economics Economics 101--300 Lecture # 10 Sherrie A. Kossoudji If you print the preliminary version of these slides before class, please be aware that they are likely to change right up to class time.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(c) Sherrie A. Kossoudji Please remember that reading these slides does not substitute for attending class. These slides are merely outline guides for what is discussed during the lecture.
Background image of page 2
(c) Sherrie A. Kossoudji Schedule: Week 6 WEEK 6: WEEK OF FEBRUARY 5 TH Lecture #: 10-11 Discussion #: 5 Subjects/Concepts: Elasticity, economic surplus Readings: This week: Next week: KW Chapter 5, KW Chapter 6 KW Chapter 13 Homework: Graded: Ungraded: Chapter 9, problem set II; Chapter 4, problem set II Chapter 5, problem set I; Chapter 6, problem set I Section Quizzes: Quiz 2 in discussion group—covers up through lecture 10, discussion group 4 Exams: None Other Important Information: None
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(c) Sherrie A. Kossoudji Quiz # 2 Quiz # 2 will take place during discussion sections this week. Sherrie’s has extra office hours today from the end of class until 1:00 so that all students can come before discussion sections. Quiz # 2 covers all material through the end of lecture on last Thursday and through discussion # 4. . Quiz # 2 will have both multiple choice and analytical questions. Questions from old versions of Quiz # 2 have been loaded onto the course site in resources, “old quizzes and exams”. The quiz is scheduled to take approximately 45 minutes. You may bring a calculator to the quiz if you want. There will be 8-10 questions, mixed multiple choice and analytical or essay answer.
Background image of page 4
(c) Sherrie A. Kossoudji Today’s Class Business When the market is not free (lecture 9 continued) The sensitivity of the curves Principle concepts: taxes, elasticity Principle tools: the demand curve, the supply curve WWWTP & practice problem
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(c) Sherrie A. Kossoudji Demand and supply sensitivity Price elasticity of demand: measures how sensitive is demand to changes in a good’s price (we use the absolute value by convention) Price elasticity of supply: measures how sensitive is supply to changes in a good’s price Income elasticity of demand: measures how sensitive is demand to changes in consumers’ income Cross price elasticity of demand: measures how sensitive is demand to changes in the price of ANOTHER good.
Background image of page 6
What kinds of questions can elasticity help us figure out? What will happen to consumer expenditures if prices rise (fall)? What will happen to firms’ revenues if prices rise (fall)? What will happen to the equilibrium quantity or price when demand curves and supply curves shift at the same time? Who will suffer the burden of a tax, consumers or producers?
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 39

econ101w0710 - Introductory Economics Economics 101-300...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online