Economics 2002 Notes - Elasticity
Economics 2002 Notes - Elasticity ECON 2002
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This 1 page Class Notes was uploaded by Garrett Henson on Sunday September 25, 2016. The Class Notes belongs to ECON 2002 at University of Louisiana at Monroe taught by Robert Eisenstadt in Fall 2016. Since its upload, it has received 2 views. For similar materials see Microeconomics in Economics at University of Louisiana at Monroe.
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Date Created: 09/25/16
9.21.16 Wk. 5 Wednesday, September 21, 2016 9:35 AM Producer Surplus Calculate Consumer Surplus Consumer Surplus Price Elasticity A good that is inelastic has relatively high consumer surplus A good that is elastic has relatively low consumer surplus Compare the % change in quantity (Q) to the % change in price (P). When a good is elastic, if Price goes up then Total Revenue goes down. The change in quantity is greater than the change in price Change in When a good is elastic, if Price goes down then Total Revenue goes down. quantity The change in quantity is greater than the change in price Change in price Income Elasticity Change in quantity Elasticity of Related Goods Percentage change Change in income in quantity of good x Percentage change in price of good y ELASTIC If the change in quantity demanded is greater than the change in price, Price Elasticity is greater than 1 and the good is Elastic INELASTIC If the change in quantity demanded is less than the change in price, Price Elasticity is less than 1 and the good is Inelastic ECON 2002 Page 1
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