Unformatted text preview: 3. Definition of the market-more specific, more elastic a. Narrowly defined i. Nikes ii. More elastic b. Broadly defined i. Sneakers 4. Time horizon a. How long you have to react to a change in price i. Longer time horizon 1. elastic ii. Shorter time horizon 1. inelastic b. For gas, it is more elastic if you have long time to get it c. For apartments, more elastic if you have 6 months to move rather than a few weeks c. Elastic graphs, very shallow line, almost horizontal d. Inelastic graphs, very steep line, almost vertical e. Perfectly elastic, horizontal line f. Perfectly inelastic, vertical line...
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This note was uploaded on 04/08/2008 for the course ECONOMICS 211 taught by Professor Petitfrere during the Fall '08 term at University of Miami.
- Fall '08