ECON 2000 1st Edition Lecture 14Outline of Last Lecture IV. Calculating Elasticitya. Area of a triangleV. Price Discriminationa. Definitionb. Example Outline of Current LectureVI. Price Elasticity of Supplya. Law of supplyb. Production behaviorsc. Definitiond. Equation e. Factor that Influences Price of EsVII. Short Runa. Definitionb. InelasticVIII. Long Runa. Definitionb. ElasticCurrent LectureVI. Price Elasticity of Supplya. Law of supplyi. Price goes up, Quantity goes upii. Price goes down, Quantity goes downb. Production behaviorsi. If production steps up or down a lot: Elasticii. If production steps up or down a little: inelasticc. Definitioni. Tells us how much quantity supplied changes with respects in changes in priced. Equation 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.i.ii. S= Quantity Suppliediii. Formula > 1 = Elasticiv. Formula < 1 = Inelasticv. Formula = 1 = unitary elasticitye. Factor that Influences Price of Esi. Time the firm has to respond to the price change1. Time is described as changing F.O.PVII. Short Runa. Definitioni. A period of time in which at least one economic resource cannot be changed1. Unchangeable=fixed resource2. Labor is typically the easiest to change in a short period of time3. Land is in between4. Physical capital is harder to change on short timeb. InelasticVIII. Long Runa. Definitioni. Period of time in which all economic resources can be altered1. No fixed resourcesb.
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