Summary DEMAND ELASTICITIES - $3.29   Add to cart

Looking for more study guides & notes to pass ECS1501 - Economics IA? Find more study material on our ECS1501 - Economics IA overview page 

Summary

Summary DEMAND ELASTICITIES

This chapter introduces students to the concept of elasticity of demand. A demand elasticity measures how consumer demand responds to changes in a variable in the demand function. The price elasticity of demand is the key elasticity measure discussed in this chapter. It measures the sensitivity of the consumer’s behavior to changes in the price of the product by dividing the percentage change in the quantity demanded by the percentage change in the price that induced the change in the quantity demanded A. With the exception of perfectly competitive price-taking firms, all firms with market power face downward sloping demand curves. These firms must lower prices to sell more units of the product.

Preview 2 out of 6  pages

avatar-seller
AXIOMATIK

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 450,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

$ 3.29
  • (0)
  Add to cart