曼昆微观经济学课文
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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 the your elasticity of demand, using the midpoint formula, would be calculated as:
(10 8)
(10 8) / 2 (2.20 2.00)
22 percent 2.32 9.5 percent
(2.00 2.20) / 2
Ranges of Elasticity
Inelastic Demand
Quantity demanded does not respond strongly to price changes. Price elasticity of demand is less than one.
(10 8) 100 10
( 2.20 2.00) 100
20 10
percent percent
2
2.00
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.
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.
Price Elasticity of Demand= (Q2 Q1 )/[(Q2 Q1 )/2] (P2 P1 )/[(P2 P1 )/2]
Computing the Price Elasticity of Demand
Price Elasticity of Demand= (Q2 Q1 )/[(Q2 Q1 )/2] (P2 P1 )/[(P2 P1 )/2]
Determinants of Price Elasticity of Demand
Necessities versus Luxuries Availability of Close Substitutes Definition of the Market Time Horizon
Determinants of Price Elasticity of Demand
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:
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.
Байду номын сангаас
Demand
(100 -50)
Price
ED
(100 50)/2 (4.00 -5.00)
(4.00 5.00)/2
$5
4
Demand 67 percent -3
-22 percent
Demand is price elastic
Price Elasticity of Demand
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.
Percentage Change Price Elasticity of Demand = in Quantity Demanded
Percentage Change in Price
Computing the Price Elasticity of Demand
Price elasticity of demand Percentage change in quatity demanded Percentage change in price
Elasticity . . .
… is a measure of how much buyers and sellers respond to changes in market conditions
… allows us to analyze supply and demand with greater precision.
Elastic Demand
Quantity demanded responds strongly to changes in price. Price elasticity of demand is greater than one.
Computing the Price Elasticity of
(10 8)
(10 8) / 2 (2.20 2.00)
22 percent 2.32 9.5 percent
(2.00 2.20) / 2
Ranges of Elasticity
Inelastic Demand
Quantity demanded does not respond strongly to price changes. Price elasticity of demand is less than one.
(10 8) 100 10
( 2.20 2.00) 100
20 10
percent percent
2
2.00
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.
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.
Price Elasticity of Demand= (Q2 Q1 )/[(Q2 Q1 )/2] (P2 P1 )/[(P2 P1 )/2]
Computing the Price Elasticity of Demand
Price Elasticity of Demand= (Q2 Q1 )/[(Q2 Q1 )/2] (P2 P1 )/[(P2 P1 )/2]
Determinants of Price Elasticity of Demand
Necessities versus Luxuries Availability of Close Substitutes Definition of the Market Time Horizon
Determinants of Price Elasticity of Demand
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:
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.
Байду номын сангаас
Demand
(100 -50)
Price
ED
(100 50)/2 (4.00 -5.00)
(4.00 5.00)/2
$5
4
Demand 67 percent -3
-22 percent
Demand is price elastic
Price Elasticity of Demand
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.
Percentage Change Price Elasticity of Demand = in Quantity Demanded
Percentage Change in Price
Computing the Price Elasticity of Demand
Price elasticity of demand Percentage change in quatity demanded Percentage change in price
Elasticity . . .
… is a measure of how much buyers and sellers respond to changes in market conditions
… allows us to analyze supply and demand with greater precision.
Elastic Demand
Quantity demanded responds strongly to changes in price. Price elasticity of demand is greater than one.
Computing the Price Elasticity of