Econ 200E- Introduction to Economics Lecture 4 Elasticity and Total Revenue Haohui Wang [email protected]
Outline Elasticity Perfectly competitive markets a. Price Elasticity of Demand b. Elasticity Formula and Definitions c. Determinants of Elasticity d. Total Revenue e. Other Elasticities
Curve Shifting and Changes in Equilibrium We can often predict the direction of change in equilibrium when the environment of the economy changes, but not the magnitude Knowing how much producers and consumers respond to price changes will help us predict the magnitude of change Motivation for this lecture in elasticity
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