chapter 5 elasticity of demand：5章需求弹性

《chapter 5 elasticity of demand：5章需求弹性》由会员上传分享，免费在线阅读，更多相关内容在应用文档-天天文库。

1、Chapter5ElasticityOfDemand5.1IntroductionDemandelasticitiesaremeasuresoftheresponsivenessof___________________tochangesinitsownprice,inincome,inpricesofothergoods.5.2PriceElasticityofDemand[Ed(p)]ItistheresponsivenessofQdofagoodtoachangeinitsown_________.Ed(p)=---

2、------------------------Exercise11.Ispriceelasticityofdemandpositiveornegative?Why?2.IfthepriceofbothCDandVCDfallsfrom$60to$50,thesaleofVCDrisesby200discswhileCDby100only.CanwesaythepriceelasticityofdemandofVCDisgreaterthanthatofCD?Why?A.Calculatingtheelasticityof

3、demand1.Theoriginalpriceandquantitymethod(__________elasticity)Ed(p)=E.g.WhenPrisesfrom$3to$4,Qdfallsfrom14,000to12,000Ed(p)=However,whenthedeirectionofpricemovementisreversedèEd(p)=Itistheweaknessofthismethod.2.Theaveragepriceandquantitymethod(__________elasticit

4、y)Ed(p)=A.Graphicmeasureofelasticity∵weconsiderthe%changeinQdandPofagoodnottheabsolutechange∴wedonotjustconsiderthe___________ofdemandcurvebutalsotheoriginalQdandP.From△Qd/△PxP/Qd,weget------------------------Refertothefigurebelow,theelasticityatpointTisthen=PP2DP

5、1T0Q1QExercise2Whichofthefollowingdemandcurves(D1orD2)ismoreelastic?(a)D1D2(b)D1D2(c)D1D2A.Priceelasticityalongalineardemandcurveandtypesofpriceelasticity1.Atmid-pointMP/D2.AttheverticalinterceptD/M3.AtthehorizontalinterceptD’4.BetweenDandM0D’Q5.BetweenMandD’B.Pri

6、ceelasticity,totalrevenueandmarginalrevenue1.Ed(p)>1(elastic)Ed(p)>1%△Qd>//

7、beingunchangedi.e.,TR↑/↓/beingunchangedifPrises,PQ↑/↓/beingunchangedi.e.,TR↑/↓/beingunchangedèMRispositive/negative/zero1.Ed(p)=1(unitarilyelastic)%△Qd>/

8、ngedèMRispositive/negative/zeroExercise3Puttheinformationyou’vegotfrompartCandDintothefollowinggraph.PD=AR0QMRB.Factorsaffectingpriceelasticity1.Availab