ECON 202 Lecture Notes - Lecture 12: Economic Equilibrium, Complementary Good, Demand Curve
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28 Feb 2017
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Elasticity: the responsiveness of demand and supply continued. If you have all the information necessary for calculating the midpoint formula, then calculate it: need 4 numbers (information of 2 points, quantity in numerator, price in denominator. Unit elasticity one point on a straight line when a demand curve moves from being inelastic to elastic. The more people have other alternatives they can engage in (cid:373)ore alter(cid:374)atives (cid:373)ea(cid:374)s they"ll substitute which causes elasticity. So far, we analyzed the directional change of supply, demand, quantity supplied, and the quantity demanded. If elasticity is perfectly elastic, why does price increase and change the amount of quantity demanded. There are infinitely many consumers and have price they are willing to pay. Not that you would see a perfectly elastic demand mainly to study behavior. Substitutes: goods and services that can be used for the same purpose. Complements: goods and services that are used together.
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