Week 4 Assignment #4
Use the midpoint formula for Ed to determine price elasticity of demand for each of
the four possible 1 price changes (that is, from 5 to 4, from 4 to 3, from 3
to 2 and from 2 to 1) in the table below. Show all calculations
TOPIC 2 THE ECONOMIC PROBLEM
Resources and Wants
Scarcity - resources available are insufficient to satisfy peoples wants is
universal. Resources can be divided into four categories:
Land includes all natural resources. These natural resources include the
What is Economics?
A Definition of Economics
All economic questions arise because we want
more than we can get.
Our inability to satisfy all our wants is called
Because we face scarcity, we must make choices.
Choices depend on incentiv