市场如何运行弹性及其应用.pptVIP

* “Extreme price sensitivity” means the tiniest price increase causes demand to fall to zero. “Q changes by any %” – when the D curve is horizontal, quantity cannot be determined from price. Consumers might demand Q1 units one month, Q2 units another month, and some other quantity later. Q can change by any amount, but P always “changes by 0%” (i.e., doesn’t change). If perfectly inelastic is one extreme, this case (perfectly elastic) is the other. Here’s a good real-world example of a perfectly elastic demand curve, which foreshadows an upcoming chapter on firms in competitive mark