MGEA02H3 Lecture 4: Week 4 study guide

47 views2 pages
wanyiwu and 39094 others unlocked
MGEA02H3 Full Course Notes
38
MGEA02H3 Full Course Notes
Verified Note
38 documents

Document Summary

N when quantity demanded is relatively unresponsive to changes in price, demand is said to be inelastic. N price elasticity of demand () measure of the responsiveness of quantity demanded to a change in the commodity"s own price. N much of the treatment of demand elasticity carries over to supply elasticity. N the long-run supply for a product is more elastic than the short-run supply. N size of the changes in the equilibrium price and quantity following a shift in demand depends on the time frame of the analysis. N when demand is inelastic relative to supply, consumers bear most of the burden of excise taxes. N when supply is inelastic relative to demand, producers bear most of the burden. Price elasticity of demand is a measure of the extent to which the quantity demanded of a product responds to a change in its price. Represented by the symbol , it is defined as.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions