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Unformatted text preview: Lecture 3 13:18 X = % change Q / % change P Quantity demanded changes 1.2% for every 1% changed Elasticity at a specific point is called point elasticity Use with small change in price Slope = (change in quantity / change in price) x (P/Q) Elasticity between 2 points is arc elasticity Used with large change in price Slope = (change in quantity / change in price) x (P2 + P1/Q2 + Q1) 1% of price change will cause an average change of 1.5% in quantity demanded P Q Elasticity Total Revenue Marginal Rev 10 1 10 8 9 2 18 6 8 3 24 4...
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This note was uploaded on 02/23/2012 for the course 373 421 taught by Professor Sani during the Spring '12 term at Rutgers.
- Spring '12