elasticity manaerial four ecobnomics.pptx

1.
Topic Four Elasticity ofDemand and Supply

2.
Elasticity ● Elasticity isa general concept that can be used to quantify the response in one variable when another variable changes. e l a s t i c i t y o f A w i t h r e s p e c t t oB  %  A %  B

3.
Elasticity – theconcept ● The responsiveness of one variable to changes in another ● When price rises, what happens to demand? ● Demand falls ● BUT! ● How much does demand fall?

4.
Elasticity – theconcept ● If price rises by 10% - what happens to demand? ● We know demand will fall ● By more than 10%? ● By less than 10%? ● Elasticity measures the extent to which demand will change

elasticity manaerial four ecobnomics.pptx

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elasticity manaerial four ecobnomics.pptx