chap006describingsupplyanddemandelasticities(中资料.ppt

Describing Supply and Demand: Elasticities Chapter 6 Laugher Curve Q. What’s the difference between an economist and a befuddled old man with Alzheimer’s? A. The economist is the one with a calculator. The Concept of Elasticity Elasticity is a measure of the responsiveness of one variable to another. The most commonly used elasticity concept is price elasticity of demand. Price Elasticity The price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Price Elasticity The price elasticity of supply is the proportional change in quan