Elasticity

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Elasticity

In this lecture we talked about elasticity of demand and the ways in which this occurs.


Lecture number:
5
Pages:
3
Type:
Lecture Note
School:
University of Oklahoma
Course:
Econ 1123 - Princ. of Econ-Micro
Edition:
1

Unformatted text preview:

ECON 1123 1st Edition Lecture 5 Outline From Previous Lecture (Lecture 4) I. Supply: A Graphical View II. Demand, Supply and Price Determination in Competitive Markets III. Changes in Demand and Supply A. Increases in buyer’s incomes B. Stronger Buyer’s tastes C. Buyer’s expect higher future prices and/or higher future incomes D. More buyers in the market E. Higher prices for substitutes F. Lower Price for Compliments Outline Lecture 5 I. Changes in Demand or Supply: The General Cases II. Total revenue (TR) and Total expenditure (TE) III. The concept of elasticity A. Price Elasticity of Demand (Ed) 1.Three Possibilities 2. Relationship between Ed 3. Determinants of Ed Lecture 3 Notes IV. Changes in Demand or Supply: The General Cases This was just a review of the fact that if we have a higher demand then the demand schedule shifts to the right. This makes price and quantity increase. If supply increases the supply schedule will shift to the right, and the price will go down while the quantity goes up. V. Total revenue (TR) and Total expenditure (TE) These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.



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