microbook_3e-page45

microbook_3e-page45 - x Consumer 2 has a very inelastic...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 4 Elasticity Eric Doviak Principles of Microeconomics Shape of the Demand Curve x When prices change, change in quantity demanded depends on shape of demand curve x Consumer 1 has a very elastic demand curve
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: x Consumer 2 has a very inelastic demand curve x Elasticity often depends on the good in question: o Elastic : education, alcohol o Inelastic : gas, food, cigarettes, electricity Page 45...
View Full Document

Ask a homework question - tutors are online