ECON101 Lecture Notes - Lecture 3: Convex Curve, Demand Curve, Negative Number

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: Zara Liaqat

Document Summary

Elasticity how a change in one variable affects another variable. Price elasticity of demand how a change in a price of a good or service affects the quantity demanded for that good or service. Cross elasticity of demand how a change in a price of a good or service affects the quantity demanded for another good or service. Income elasticity of demand how a change in income affects the quantity of demand for a good or service. Price elasticity of supply how a change in the price of a good or service affects the quantity supplied for that good or service. Price elasticity of demand = measures how responsive demanders are to a change in the price of a good or service. = measure of the responsiveness of the quantity demanded of a good or service to a change in its price, when all other influences on a buyer"s plans remain unchanged.