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Elasticity and slope (Price. (Availability. (promissory fulfilled)., It is…
Elasticity and slope
Price.
Availability. (promissory fulfilled).
It is an independent factor.
It is measurable.
It is a exchange unit.
It determines other dependent variables.
Three types of human behavior. (Responsiveness)
equal return effort from others.
lesser in return effort from others.
more return effort from others.
Elasticity cases: (consumer behavior)
Elasticity = 1
Price :arrow_up: 2% , quantity in demand :arrow_down: 2%
Elastic (unit elastic) equal behaviour on both sides.
Elasticity < 1
Price :arrow_up:2% , quantity in demand :arrow_down: 1%
In elastic (less elastic)
Elasticity > 1
Price :arrow_up: 2% , Quantity in demand :arrow_down:9%
Highly elastic.
Elasticity of demand
The % change in to the price in accordance with the % change in quantity demand.
Price elasticity of demand
Measures the change in quantity demanded of a product in relation to its price change.
:small_red_triangle:Q/Q :heavy_division_sign: :small_red_triangle:P /P
Price elasticity of supply
Measures the relationship between change in quantity supplied following a change in price.
:small_red_triangle:S/S :heavy_division_sign: :small_red_triangle:P/P
Consumer behavior
determine the demand factor of market
it is not neutral
consumes the unit