elasticity价格弹性.docx

http://www.revisionguru.co.uk/economics/ped.htmlPrice Elasticity of DemandThe quantity demanded of a good is affected by changes in the price of the good, changes in prices of other goods, changes in income and changes in other relevant factors. Elasticity is a measure of just how much the quantity demanded will be affected by a change in price, income, price of other goods etc..If the price of steak increases by 1% and the quantity demanded then falls by 20% we can see there has been a very large drop in the amount demanded in comparison to the change in price. The price elasticity of demand for steak is said to be high. If the quantity of steak demanded was to only fall by 0.01%, we can see this is a fairly insignificant fall in quantity in response to the 1% increase in price. In this case the price elasticity of demand for steak is low. It can be calculated using the following formula: percentage change in quantity demandedpercentage change in price(To help you remember quantity is on top of price think of the football team QPR). The table below shows a number of calculations of price elasticity of demand. % change in price % change in quantity elasticity 10 20 2 50 25 0.5 7 28 4 9 3 0.33 Elasticity figure are actually negative, but economists forget this point in the name of simplicity. Elastic and Inelastic Demand Different values of price elasticity are given special names: ? Demand is price elastic, if the value of elasticity is greater than one. If demand for a good is price elastic then a percentage change in price will lead to an even larger percentage change in the quantity demanded. For example if a 10% rise in the price of CDs leads to a 20% fall in the demand, then price elasticity is 20% / 10% or 2 and the demand for CDs is therefore elastic. ? Demand is price inelastic, if the value of elasticity is less than one. If the demand for a good is inelastic then a percentage change in the price will bring about a smaller percentage change in the quantity