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UF / Economics / ECO / What factors influence the size of elasticity?

What factors influence the size of elasticity?

What factors influence the size of elasticity?

Description

School: University of Florida
Department: Economics
Course: Principles of Microeconomics
Term: Fall 2019
Tags: PriceElasticity, DemandElasticities, elasticity, Microeconomic, and ElasticityIntuition
Cost: 25
Name: ECO 2023 Week 5 Notes
Description: These notes cover all of chapter 4 Elasticity.
Uploaded: 09/22/2019
2 Pages 21 Views 5 Unlocks
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Chapter 4 Elasticity


What factors influence the size of elasticity?



Price Elasticity of Demand S - (Percentage change in quantity demanded)

(Percent change in Price) - %AQ

-

NP

• Elastic: When the elasticity exceeds 1.0.

•Unit Elastic: When the elasticity equals 1.0.


Percentage change in the quantity demanded caused by a percentage cange in income, is what?



• Inelastic: When the elasticity is less than 10.

Elasticity Midpoint Formula We also discuss several other topics like What is the eukaryotic chromosome mapping?
We also discuss several other topics like Language is received or perceived also through what?

I Qd

Elasticity: Intuition

Perfectly

Inelastic

Inelastic Unresponsive)

57

i o isa

Perfectly

Elastic

Elastic (Responsive)

364

36-0


What is the perfectly elastic?



Elasticity: The Total Revenue Test Elastic

Pr Q&1 TRI

"STRONG >E>

RESPONCE" PyQTRA Unit Elastic P4 → Q96 → TR → "ONE-TO-ONE <> E=1 RESPONCE" Inelastic PT Q& TRt. "WEAK DELI RESPONSE" PL + TRL If you want to learn more check out What is macroscopic anatomy?

PyQ TR

ay Soup

What Factors Influence the size of the Elasticity ? 1) Number of Substitutes

-The larger the number of substitutes, the larger the elasticity of demand. 2) The Fraction of the Budget Spent on the Good We also discuss several other topics like Why is it important to have a personal philosophy about life?

- The larger the fraction of the budget spent on the good, the larger the elasticity of demand.

Income Elasticity of Demand

- The percentage change in the quantity demanded caused by a percentage change in income.

Cene = percentage change in the quantity demanded 2AQA

%AINC

Cross Elasticity of Demand

- The percentage change in the quantity demanded caused by a percentage change in the price of another good. If you want to learn more check out What is incrementalism theory?

Broneer Percentage change in the garntity demanded. - Zagdi CCROSS Percentage change in Price of another good ZAR:

Price Elasticity of Supply

- The percentage change in the quantity supplied caused by a percentage change in price. - Percentage change in the quantity supplied -%DG We also discuss several other topics like What are the steps in the perceptual process?

Percentage change in the price ZAP

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V SOUD

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