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Dontthink 2whichcurveisaffectedandwhy

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Unformatted text preview: OT use negative numbers. 3. Fill in the Original numbers first (Qd,P) 4. Fill in the other two numbers Inelastic vs Elastic 21:15 5. Know the answer­ Ed> 1 Elastic, Ed<1 Inelastic Marginal Revenue is the change in total revenue divded by the change in quantity MR= ΔTR/ΔQ Cross elasticity of demand Ec= the percentage change in quantity demanded of product B divided by the percentage change in price of product A Ec=%Δ in Qd of b/ %Δ in P of a Ec= Δ in Qd of b/ Qd of b x P of a/ Δ in P of a You can use negative numbers Ec>0 substitutes, Ec<0 complement Income elasticity of Demand Ey­ the percentage change in quantity demanded divided by the percentage change in income Ey= %Δ in Qd/ % Δ in Y Ey= Δ in Qd/ Qd x Y/Δ in Y You can use...
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This note was uploaded on 10/30/2012 for the course BUS 420 taught by Professor Thisal during the Fall '11 term at Arizona.

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