A broader view of Elasticity(3 pages)
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A broader view of Elasticity
This lecture explored elasticity in more depth. We talked about price elasticity of supply, income elasticity of demand, and cross elasticity of demand.
- Lecture number:
- Lecture Note
- University of Oklahoma
- Econ 1123 - Princ. of Econ-Micro
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ECON 1123 1st Edition Lecture 9 Outline From Previous Lecture (Lecture 8) I. Changes in Relative Prices: A correction II. Individual and Market Demand Schedules III. A More sophisticated view of Relative Price Change Outline Lecture 9 I. Other Elasticity Measures A. Price Elasticity of Supply (Es) B. Income Elasticity of Demand (Ey) C. Cross Elasticity of Demand (Eab) Lecture 8 Notes II. Other Elasticity Measures D. Price Elasticity of Supply (Es) – measurement of how responsive sellers are to price changes Es= percentage change in quantity supplied/percentage change in price Note: this is movement along a given supply schedule (not a shift in the schedule) Three Possibilities: Es>1 (elastic) Es<1 (inelastic) Es=1 (unitary elastic) Es and time- Firms generally have 2 types of inputs (resources) a. Variable inputs(example: labor and raw materials) b. Fixed inputs (example: capital or plant capacity) Three time periods: 1. Market period= Time period so short that output and the number of firms in the industry are fixed 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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