ECON-UA 2 Lecture Notes - Lecture 4: Evernote, Hyperbola, Inferior Good
7 Sep 2016
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Elasticity (sensitivity measure) | measure of the responsiveness of one variable to a change in another variable. Percentage change in quantity demanded caused by a 1 percent change in the good"s own price. Elasticity of demand = %change in quantity demanded / %change in price. %change in quantity demanded = (q1-q0) / [(q1+q0)/2] https://www. evernote. com/shard/s234/sh/3ff2138c-4db4-4fc0-b5ca-3020d42be6a7/996f94bba3ac6592. 111. 1 kb rectangular hyperbola | graph of unit elastic curve (graph c) it is inelastic when it is less than |-1| elastic when it is larger than |-1| when. = 0, it is a perfectly inelastic demand (graph d) when. = , it is a horizontal demand curve (graph e) 7/9/2016, 1:28 pm when the slope is constant, price elasticity falls as you move down the curve. Tr = total sales revenue = p*q = area of the rectangle under the demand curve at any (p,q) pair. Tr = p < q = tr (p&tr are in the opposite direction) =
