ECON 1100 1nd Edition Lecture 10 Outline of Last Lecture I. Consumer & Producer SurplusOutline of Current Lecture I.ElasticityCurrent LectureI. ElasticityWay of measuring responsiveness of a changeUsed very broadlyDifferent affects for every goodChange in one leads to change in the otherP changes & Q responds & vice versaSmall changes don’t have big affectHow to find elasticity: Variable respondingVariable that caused changeTo find percentage use midpoint formulaChange is a unitless measureElasticity = how responsive (in % terms) in variable X (Q) to a % change in variable Y (P)Percent change = absolute change/value of variableThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
View Full Document
Unlocking...