Class Notes (836,615)
Canada (509,866)
Economics (490)
ECON 103 (154)
Lecture

ECON103 Lecture #5.docx

2 Pages
101 Views
Unlock Document

Department
Economics
Course
ECON 103
Professor
Iryna Dudnyk
Semester
Fall

Description
Lecture #5 Elasticity(E) -measures how responsive quantity(Q) is to changes in Income(M) and Price’s(P) Elasticity: (E)>0=>positive relationship (E)<0=>negative relationship (E)=0=>no elasticity Large E=>Q is “sensitive” (Own-Price)Elasticity of Demand E-by how many percent Quantity Demanded(Q ) chadges in response to one percent change in price(P) Example: FIGURE 2.0 Price(P)=5 Quantity(Q)=20 Price(P)=7.5 Quantity(Q)=5 Arc elasticity -Use percentage change between 2 points; value depends on which point is initial See Written for formula FIGURE 2.1 Point E -Calculated for one point on the demand curve Example: See written FIGURE 2.2 Elasticity Summary: -when Price increases, Quantity decreases=> own price elasticity is always negative -Use absolute value lEl -if lEl>1 =((change in %Q)/ (change in %P))>1 (change in %Q)> (change in
More Less

Related notes for ECON 103

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit