ECON 2000 Chapter : Econ 2000- Chapter 3
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*all the parentheses with letters or words are indicating a subscript of that word or letter. d:demand; s:supply. *also at the bottom they have asteroids that is just something that he said in class that would be on the test or not be on the test! Percentage change in price: this tells us exactly how quantity demanded responds to a change in price, elasticity is independent of units, price elasticity of demand is always expressed as a positive number, ex. Price rises 10% and quantity demanded falls by. Like absolute value positive answers: unit change example, computer cost- pencil cost- , sales- 10 sales- 10,000. Raise the price by sales drop by one unit: computer cost- ,001 pencil cost- , sales-9 sales- 9,999. ,000 x 10= 10,000 x 10,000= 10,000. ,001 x 9= 9,009 x 9,999= 19,998. Q(2)-q(1: e(d)= % change of q = (q(1)+q(2)