ECON 103 Lecture Notes - Mavi Jeans
7 Dec 2013
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=(change in quantity of good 1 %)/( change in price of good 2 %) =((change in quantity of good 1)/( change in price of good 2))x(price of good. By how many % quantity demanded of good one will change when price of the other good, price of good 2, changes by 1%. Keeping m and own price of good 1 constant. When close substitutes are available demand is more elastic. Definition of the product suppose price increases by 50% for: Some factors are fixed, not enough time to make full adjustment.
