Elasticity of demand ppt. It discusses: 1.
Elasticity of demand ppt. It explains the methods for measuring elasticity and discusses the importance of understanding demand responsiveness in economic analysis. It categorizes elasticity into types such as price elasticity, income elasticity, and cross elasticity, and classifies them based on degree as perfectly elastic, inelastic, or unitary. Price. Price elasticity measures the responsiveness of quantity demanded to a price change . Example (from last week) hockey is substitute for basketball. The document explains the elasticity of demand, which measures how quantity demanded changes in response to price changes among various determinants, including price, income, and advertisement. The change in the quantity demanded of a product due to a change in its price is known as Price elasticity of demand. Slope of Demand Curves. Review Question 1 and 2 pg 86 Factors affecting elasticity of demand Whether the good is a luxury or a necessity. Price ↑ 10% => Qty Demanded ↓ ? (how much?). bbrr3wwk ym ryuyb 7ni 5v waia tcx m2hulzq 3kvuuv x8q
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