第15章讲义 市场需求.pptVIP

Point Own-Price Elasticity E.g. Then so Point Own-Price Elasticity pi Xi* everywhere alongthe demand curve. Revenue and Own-Price Elasticity of Demand If raising a commodity’s price causes little decrease in quantity demanded, then sellers’ revenues rise. Hence own-price inelastic demand causes sellers’ revenues to rise as price rises. If raising a commodity’s price causes a large decrease in quantity demanded, then sellers’ revenues fall. Hence own-price elastic demand causes sellers’ revenues to fall as price rises. Revenue and Own-Price Elasticity of Demand Sellers’ revenue is Revenue and Own-Price Elasticity of Demand Sellers’ revenue is So Revenue and Own-Price Elasticity of Demand Sellers’ revenue is So Revenue and Own-Price Elasticity of Demand Sellers’ revenue is So Revenue and Own-Price Elasticity of Demand Revenue and Own-Price Elasticity of Demand so if then and a change to price does not altersellers’ revenue. Revenue and Own-Price Elasticity of Demand but if then and a price increase raises sellers’revenue. Revenue and Own-Price Elasticity of Demand And if then and a price increase reduces sellers’revenue. Revenue and Own-Price Elasticity of Demand In summary: Own-price inelastic demand;price rise causes rise in sellers’ revenue. Own-price unit elastic demand;price rise causes no change in sellers’revenue. Own-price elastic demand;price rise causes fall in sellers’ revenue. Marginal Revenue and Own-Price Elasticity of Demand A seller’s marginal revenue is the rate at which revenue changes with the number of units sold by the seller. Marginal Revenue and Own-Price Elasticity of Demand p(q) denotes the seller’s inverse demand function; i.e. the price at which the seller can sell q units. Then so Marginal Revenue and Own-Price Elasticity of Demand and so Marginal Revenue and Own-Price Elasticity of Demand says that the rate at which a seller’s revenue changeswith the number of units it sellsdepends on the sensitivity of quantitydemanded to p