PPT-4b – Other Types of Elasticity

This web quiz may appear as two pages on tablets and laptops I recommend that you view it as one page by clicking on the open book icon at the bottom of the page Four Types of Elasticity HOW MUCH. 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 Introduction. Elasticity. Price Elasticity. Elasticity. Principles. Arc elasticity. Mid-point method. Intermediate. Point elasticity. Elasticity. What we add in ECON 5340. Elasticity: Proportionate Change in Q for a Proportionate change in P. McGraw-Hill/Irwin. Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.. Elasticity. Issue: How responsive is the demand for . goods and services to . changes in . prices, . ceteris paribus. The concept of price elasticity of demand is useful here..  . Elasticity measures the degree of one variable’s dependence on another variable, or the “sensitivity” of one variable to a change in another variable. .  . While calculating elasticity, changes are expressed in relative (percentage) terms. . 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 . 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 . Elasticity of Demand describes the percentage change in . quantity demanded. that follows a price . change.. Elasticity of Demand. Demand is . Elastic. Demand is . Inelastic. . Change in Price. Large Change in . Readings. Readings. Baye. 6. th. edition or 7. th. edition, Chapter 3. BA 445 Lesson A.3 Elasticity. Overview. Overview. Overview. BA 445 Lesson A.3 Elasticity. Own Price . Elasticity . measures . 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?. Fundamentals of. Consumer Choice. Fundamentals of Consumer Choice. Factors affecting choice. :. Limited income necessitates choice.. Consumers make choices purposefully.. One good can be substituted for another.. Price Elasticity of Demand What is it (in simple language)? It’s how much buyers will respond to a change in price. It’s the percentage change in quantity demanded ÷ the percentage change in price. Elasticity – the concept. The responsiveness of one variable to changes in another. When price rises, what happens . to demand?. Demand falls. BUT!. How much does demand fall?. Elasticity – the concept. By Catalina Reguerin. Article Recap. Pandora is introducing a $5/month music streaming service. Most music streaming alternatives currently charge $10/month. Pandora is offering a monthly streaming option at half the cost of its competitors.