微观经济 ch.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ELASTICITIES OF SUPPLY AND DEMAND 2.4 Substituting into the supply curve equation, we get We use the demand curve to find the price elasticity of demand: We can likewise calculate the price elasticity of supply: Because these supply and demand curves are linear, the price elasticities will vary as we move along the curves. Thus demand is inelastic. 2.5 Demand SHORT-RUN VERSUS LONG-RUN ELASTICITIES (a) Gasoline: Short-Run and Long-Run Demand Curves Figure 2.13 (a) In the short run, an increase in price has only a small effect on the quantity of gasoline demanded. Motorists may drive less, but they will not change the kinds of cars they are driving overnight. In the longer run, however, because they will shift to smaller and more fuel-efficient cars, the effect of the price increase will be larger. Demand, therefore, is more elastic in the long run than in the short run. 2.5 Demand SHORT-RUN VERSUS LONG-RUN ELASTICITIES (b) Automobiles: Short-Run and Long-Run Demand Curves Figure 2.13 (b) The opposite is true for automobile demand. If price increases, consumers initially defer buying new cars; thus annual quantity demanded falls sharply. In the longer run, however, old cars wear out and must be replaced; thus annual quantity demanded picks up. Demand, therefore, is less elastic in the long run than in the short run. Demand and Durability 2.5 Demand SHORT-RUN VERSUS LONG-RUN ELASTICITIES Income Elasticities Income elasticities also differ from the short run to the long run. For most goods and services—foods, beverages, fuel, entertainment, etc.— the income elasticity of demand is larger in the long run than in the short run. For a durable good, the opposite is true. The short-run income elasticity of demand will be larger than the long-run elasticity. 2.5 Demand SHORT-RUN VERSUS LONG-RUN ELASTICITIES GDP and Investment in Durable Equipment Figure 2.14 Annual growth rates are compared for GDP