ECON 2009 Chapter Notes - Chapter 2: Marginal Revenue, Mako (Voice Actress), Tachykinin Receptor 1

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Good managers learn to understand the nature of demand for products and effectively manage it. Managers need to predict how their changes affect demand. Elasticity measures the percentage change in one factor given a small marginal percentage change in another factor. Market demand schedule table showing the total quantity of the good purchased at each price. Market demand curve the plot of the market demand schedule on a graph. Market demand function the relationships between the quantity demanded and the carious factors that influence this quantity. B"s in the equation are parameters constant of variable terms used in the function that help managers determine the specific form of the function but not its general nature. Managers estimate these parameters of the demand function to increase their knowledge of the demand for their product e. g. q= -2000p+70i-375s+0. 0001a. Elastic when 1% change in price leads to more than 1% change in demand.

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