NU
ECON 1116 -
Divisibility of Goods
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ECON 1116 Divisibility of goods 3 October Have mostly assumed that goods we examine are divisible can be consumed in fractional amounts Gives us continuous curves If goods aren t divisible the demand or supply curve is a step function o Piecewise function but vertical o Demand will be zero until it hits a certain price demand will be one until in declines to next specified price If MV or MC of demand is presented in table assume that the good is not divisible unless told otherwise Focus mostly on price elasticity of demand and price elasticity of supply o Cross price and income are mostly irrelevant for the exam Elasticities
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