Ex CIF instates a new rule saying tennis players need to play with green tennis

Ex cif instates a new rule saying tennis players need

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Ex) CIF instates a new rule saying tennis players need to play with green tennis balls. If price of green tennis balls goes up, ashely slowly lowers Q, probably inelastic The more that good is “needed”, the more inelastic the given good Note: more inelastic is equivalent to less elastic o Scope of good Scope – the range covered Ex) In-n-out vs. fast food Wilson tennis balls vs. tennis balls
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If price inreases she switches to other brand ( more substitutable) If price goes up she is sort of stuck The larger the scope of the good, the less possible replacements the more inelastic o Long term vs. short term Ex) buying Tennis balls one week before game vs, buying them one hour before a game The less time to make a decision the less alternatives, the harder to ditch The lager the time period, the more elastic the given good Perfectly inelastic and perfectly elastic are sort of extreme and is general unrealistic o Price elasticity of supply can sort of be zero Ex) what is the price elasticity of supply of the 1 st edition book on the rules of tennis? Why? Answer: Sort of, because regardless if price, you can’t really produce more 5B – Calculating price elasticity Price elasticity of demand = l % change in quantity demand l / l % change in price l o For mathematical reasons to ensure that he price elasticity doesn’t go below zero o Price elasticity of supply = % change in quantity supplied / % change in price o Ex) Quantity demand for tennis balls goes down 20% if the price goes up by 20%.
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