Elasticity of Demand:
1. Midpoint Formula
Economist prefers to use Midpoint formula to calculate the Elasticity of Demand.
Elasticity of Demand ED = A/B, where A = Change in Q/(Sum Q/2) ,
B = Change in P/(Sum P/2).
Quantity demanded (in Gallon
Using your example of gold demand in India. Give me an example of what would cause a
shift to the left in the demand for goal. Real - hypothetical - whatever - give me an example
The factors that shift gold demand to left are Increases i
Week 2: Marginal Analysis | Production, Costs, and Perfect Competition
Last week, we spoke briefly about how pricing decisions can be made to maximize total revenue by using
elasticity of demand to determine customer's sensitivity to changes in price.
Group Exercise - Supply & Demand
GROUP TEAMING EXERCISE: In dealing with these questions, be absolutely sure you are clear on the
distinctions between demand vs. quantity demanded, and between supply vs. quantity supplied.
1. Immigration policies have inc
WK6: Macro & Micro Integration (Chapter 5, 28, 29)
Given a new forecast of macroeconomic variables and an existing firms performance goals, predict
any impact(s) of the macroeconomic forecast on the firms key microeconomic variables (e.g., demand
WK7: This weeks mantra, International Trade & the World Economy (Chapter 2, 29, 30)
Given historical exchange rates, import/export volumes, and regulatory relations between two
nations, analyze the role of trade barriers and institutional entities (e.g.,
WK5: Monetary and Fiscal Policy (Ch. 23, 24, 25, 26, 27, 28)
This weeks mantra this weeks chant:
Given GDP, budget deficit (surplus), and trade deficit (surplus) data, illustrate or
calculate the impact on each changes in fiscal policy (government spendin
Wk4: This weeks Mantra! Macronomics | Inflation & Unemployment (Ch. 19, 20, 21, 22)
Given sample macroeconomic data, derive unemployment and real and nominal GDP, assessing the
sensitivity of market and firm strategic policy decisions to the quality of st
focus of this chapter is distributive bargaining, a competitive or individualistic negotiation
strategy. This is what most people think of when someone mentions bargaining or negotiation, and
it is how most people negotiate when they buy houses and ca