4: Elasticity

Microeconomics 1e · LibreTexts

0%

Contents

    Text

    Size
    100%
    Theme
    Typeface
    Line length
    Spacing

    From LibreTexts, under CC BY-NC-SA 4.0, as the source states it; its equations are written in TeX, which the PDF shows typeset. This page at LibreTexts.

    Learning Objectives

    Upon completion of this session, you will be able to:

    • Articulate the elasticity of demand formulas for different demand determinants (price, income, and cross-price) interpret the magnitude and signs of the different elasticities.
    • Explain the implications of the law of diminishing marginal utility and the law of demand for the relationship between price and quantity, the slope of the demand curve, and the sign of the price elasticity of demand.
    • Classify what demand determinants are changing in media reports and be able to predict how demand will shift (or the movement there will be a movement along the demand curve) as a result.
    • Recognize how the determinants of elasticities affect the magnitudes of elasticities.
    • State why we buy certain goods and not others.

    This page titled 4: Elasticity was last modified on Wed, 10 Jul 2024 19:59:49 GMT and is shared under a CC BY-NC-SA 4.0 license and was authored, remixed, and/or curated by Martin Medeiros.