ECON 20A Lecture Notes - Lecture 5: Breakfast Cereal, Midpoint Method, Sunscreen

50 views7 pages
18 Jan 2018
School
Department
Course
Professor

Document Summary

You charge per website, and currently sell 12 websites per month. Your costs are rising (including the opportunity cost of your time), so you consider raising the price to . The law of demand says that you won"t sell as many websites if you raise your price. Basic idea: elasticity measures how much one variable responds to changes in another variable. One type of elasticity measures how much demand for your websites will fall if you raise your price. Definition: elasticity is a numerical measure of the responsiveness of qd or qs to one of its determinants. Price elasticity of demand measures how much qd responds to a change in p. Loosely speaking, it measures it measures the price sensitivity of buyers" demand. The midpoint is the number halfway between the start and end values, the average of those values.

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