ELASTICITY - ELASTICITY Slope: Price/Quantity E=|% in the Q...

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ELASTICITY Slope: ΔPrice/ΔQuantity E=|%Δ in the Q Demanded/ %Δ in the P|= |%ΔQd/%ΔP| Say: Price rises by 10% and quantity falls by 3%. .. Elasticity= .3 How? |3%/10%| E>1: Elastic Strong Response E=1: Unit Elastic E<1: Elastic Weak Response %ΔQd=[ (ΔQd/Qd)x100] %ΔP=[(ΔP/P)x100]
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This note was uploaded on 01/25/2012 for the course ECO 2023 taught by Professor Rush during the Spring '08 term at University of Florida.

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