PPT-Pricing II: Constant Elasticity

This module covers the relationships between price and quantity elastic demand inelastic demand and optimal price under conditions of constant elasticity Authors Paul Farris and Phil Pfeifer. Elasticity The Responsiveness of Demand and Supply Instructor J INKOOK EE Department of Economics Texas AM University ECON 202 504 Principles of Microeconomics brPage 2br Price Elasticity of Demand Elasticity and Total Revenue Other Demand Elastic Decision Analysis and Risk Management. Objectives of the Class. Use Marginal Analysis for Decision Making. Calculate effect on Operating Income of a Decision. Identify and describe qualitative factors. A measure of the responsiveness of one variable (usually quantity demanded or supplied) to a change in another variable. Most commonly used elasticity: price elasticity of demand, defined as:. Elasticity. Elasticity theory is . a mathematical model of material deformation. Using principles of continuum mechanics, it is formulated . in terms of many different types of . field variables specified at spatial points in the body under study. Some examples include:.  . http. ://www.youtube.com/watch?feature=player_embedded&v=9mIBKifOOQQ. Pricing Strategies. Chapter 11. Price Defined. The amount of money charged for a product or service that consumers exchange for the benefits of having or using the product or service.. 1. Chapter 6. Elasticity. 2. Concepts in this chapter:. Price elasticity of demand. Cross price elasticity of . demand. Income elasticity of demand. Price elasticity of supply. Elasticity measures sensitivity. Chapter 5. Outline. The Elasticity of Demand. Applications of Demand Elasticity. The Elasticity of Supply. Applications of Supply Elasticity. Using . Elasticities. for Quick . Predictions . Appendix . Price is the same thing as cost. What is a pricing strategy?. the marketing mix - Price. Price is the amount of money that the customer has to pay to receive the good or service. Firms use different pricing strategies to price their products, taking into account a number of factors such as market research, competitors’ prices and the state of the economy. In this chapter, look for the answers to these questions:. What is elasticity? What kinds of issues can elasticity help us understand?. What is the price elasticity of demand? How is it related to the demand curve? How is it related to revenue & expenditure?. 14. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. List the four pricing orientations.. Explain the relationship between price and quantity sold.. Outline the legal constraints on pricing.. Identify the major categories of pricing objectives.. Explain price elasticity and its determinants.. List the practical problems involved in applying price theory concepts to actual pricing decisions.. AP Microeconomics. Mr. Bordelon. Which of the following best describes price elasticity of demand?. Price elasticity of demand measures the responsiveness of the change in the quantity demanded to a change in price.. with Duane Weaver. 17-. 2. Outline. Price & the Law. Pricing Objectives. Profitability Objectives. Volume Objectives. Meeting Competition Objectives. Prestige Objectives. Determining Price. Elasticity and Pricing. ECONOMICS. and. MICROECONOMICS. Paul Krugman | Robin Wells. What is the definition of . elasticity?. What is the meaning and importance of:. price elasticity of demand?. income elasticity of demand?.