ECON 2000 Chapter : Chapter 5

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15 Mar 2019
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Slope and elasticity, types of elasticity: calculating elasticities. Calculating percentage changes, elasticity is a ratio of. Percentages, the midpoint formula, elasticity changes along a. Straight-line demand curve, elasticity and total revenue: the determinants of demand elasticity. Unimportant, the time dimension: other important elasticities. Income elasticity of demand, cross-price elasticity of demand, Elasticity- a general concept used to quantify the response in one variable when another variable changes: price elasticity of demand. The ratio of the percentage of change in quantity demanded to the percentage of change in price measures the responsiveness of quantity demanded to changes in price. Demand in which quantity demanded does not respond at all to a change in price. Demand in which quantity drops to zero at the slightest increase in price. Elastic demand- a demand relationship in which the percentage change in quantity demanded is larger than they percentage change in price in absolute value (a demand elasticity with an absolute value greater than.

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