曼昆微观经济学第五版第五章课文精品PPT课件
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Price Elasticity of Demand= (Q2 Q1 )/[(Q2 Q1 )/2] (P2 P1 )/[(P2 P1 )/2]
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand
work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.
Elasticity . . .
… is a measure of how much buyers and sellers respond to changes in market conditions
Price elasticity of demand is the percentage change in quantity demanded given a percent change in the price.
It is a measure of how much the quantity demanded of a good responds to a change in the price of that good.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand
The price elasticity of demand is computed as the percentage change in the quantity demanded divided by the percentage change in price.
(
(10 8) 100 10
2.20 2.00) Hale Waihona Puke Baidu00
20 10
percent percent
2
2.00
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand Using the Midpoint Formula
The midpoint formula is preferable when calculating the price elasticity of demand because it gives the same answer regardless of the direction of the change.
… allows us to analyze supply and demand with greater precision.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Price Elasticity of Demand
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Determinants of Price Elasticity of Demand
Necessities versus Luxuries Availability of Close Substitutes Definition of the Market Time Horizon
Elasticity and Its Application
Chapter 5
Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the
Percentage Change PriceElasticityof Demand=inQuantityDemanded
Percentage Change in Price
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand
Price elasticity of demand Percentage change in quatity demanded Percentage change in price
Example: If the price of an ice cream cone increases from $2.00 to $2.20 and the amount you buy falls from 10 to 8 cones then your elasticity of demand would be calculated as:
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Determinants of Price Elasticity of Demand
Demand tends to be more elastic :
if the good is a luxury. the longer the time period. the larger the number of close substitutes. the more narrowly defined the market.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand
work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.
Elasticity . . .
… is a measure of how much buyers and sellers respond to changes in market conditions
Price elasticity of demand is the percentage change in quantity demanded given a percent change in the price.
It is a measure of how much the quantity demanded of a good responds to a change in the price of that good.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand
The price elasticity of demand is computed as the percentage change in the quantity demanded divided by the percentage change in price.
(
(10 8) 100 10
2.20 2.00) Hale Waihona Puke Baidu00
20 10
percent percent
2
2.00
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand Using the Midpoint Formula
The midpoint formula is preferable when calculating the price elasticity of demand because it gives the same answer regardless of the direction of the change.
… allows us to analyze supply and demand with greater precision.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Price Elasticity of Demand
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Determinants of Price Elasticity of Demand
Necessities versus Luxuries Availability of Close Substitutes Definition of the Market Time Horizon
Elasticity and Its Application
Chapter 5
Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the
Percentage Change PriceElasticityof Demand=inQuantityDemanded
Percentage Change in Price
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Computing the Price Elasticity of Demand
Price elasticity of demand Percentage change in quatity demanded Percentage change in price
Example: If the price of an ice cream cone increases from $2.00 to $2.20 and the amount you buy falls from 10 to 8 cones then your elasticity of demand would be calculated as:
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Determinants of Price Elasticity of Demand
Demand tends to be more elastic :
if the good is a luxury. the longer the time period. the larger the number of close substitutes. the more narrowly defined the market.