lectur16 - PriceElasticityofDemand Lecture1 1...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Price Elasticity of Demand Price Elasticity of Demand Lecture 1 Lecture 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 Demand Curves Show How Sensitive  Consumers are to Price Changes P Quantity Demanded/unit time Demand Relatively inelastic 1. Quantity demanded is not affected very       much by price changes. 2. Therefore not very sensitive to price changes. 3.  Not many substitutes, short period of time,      and small proportion of budget. 4.   Q is not as great as the P.
Background image of page 2
3 Demand Curves Show How Sensitive  Consumers are to Price Changes P Quantity Demanded/unit time Demand Relatively elastic 1. Quantity demanded is affected very       much by price changes. 2. Therefore very sensitive to price changes.                    3.  Many substitutes, long period                          of time,  and large proportion                          of budget. 4.   Q is greater than the P.
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 Elastic? or, Elastic? or, 0 1 2 3 4 5 6 0 100 200 300 400 500 Corn Price 1000 bu./month Here the slope relates that the quantity demanded is very      sensitive to price changes        
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/06/2011 for the course ECON 101, 102, taught by Professor Staff during the Fall '10 term at Rutgers.

Page1 / 21

lectur16 - PriceElasticityofDemand Lecture1 1...

This preview shows document pages 1 - 5. Sign up to view the full document.

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