5第五章弹及其应用.ppt

* Here, Qd and Qs are short for quantity demanded and quantity supplied, as in the PowerPoint for Chapter 4. * It might be worth explaining to your students that “P and Q move in opposite directions” means that the percentage change in Q and the percentage change in P will have opposite signs, thus implying a negative price elasticity. To be consistent with the text, the last statement in the green box says that we will report all price elasticities as positive numbers. It might be slightly more accurate to say that we will report all elasticities as non-negative numbers: we want to al