Micro Ch 5 1 Designing website a Price 200 per website quantity 12 a month b P2 250 how many fewer questions will be sold c Elasticity E change quantity change price d Price rises by 10 quantity decreases by 20 what is E e 20 10 2 f Price increases by 20 quantity goes down by 5 2 Elasticity a Elastic i Many substances ii Luxury iii Narrow peanut butter compared to all food iv Long time period b Determinants i Number of close substances ii Necessity or luxury iii How broadly defined is the product iv Time horizon think of gas c Inelastic i Few substances ii Need market equilibrium iii Broad all leg wear compared to just jeans iv Short time period d Determinants of Elastic Supply i How easily can quantity change when price changes e Income Elasticity i Change quantity change income ii Toilet paper 0 f Cross price elasticity i Change quantity change price NOTES
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