CAS EC 101 Lecture Notes - Junk Food, Demand Curve, Salt
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CAS EC 101 Full Course Notes
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On the demand curve, when the prices rise, the quantity demanded falls. On the supply curve, when the prices rise, the quantity supplied increases. If we raise the price of gasoline by sh. 80/gallon, will this bring down our profits or will they go up? . In india, if the government pays to high-caste indians who marry low-caste. Indians, by how much will marriage across castes increase? . To answer these questions, we have to understand the concept of elasticity. Which measures the responsiveness of one variable to another as a ratio of percentages. We begin with the price elasticity of demand. Sometimes we call it the elasticity of demand. The elasticity of demand tells us how sensitive the quantity demanded is to the good"s price at a given point on a demand curve. The price elasticity of demand is defined by. Percentage change in quantity demanded(result)/percentage change in price (cause)
