ECON 1000 Lecture Notes - Lecture 5: Ice Cream Van, Demand Curve, Wwwq
Document Summary
We are going to discuss how much curves move. To measure how much consumers respond to change we use elasticity. Elasticity: a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants: the price elasticity of demand and its determinants. The fall in price raises the demand. It is elastic if a good responds drastically to a change in price. It is inelastic if the quantity demanded only has a slight change. Goods with close substitutes are more elastic: e. g. easy to switch from butter to margarine. N o(cid:396) l is highly depe(cid:374)de(cid:374)t o(cid:374) custo(cid:373)e(cid:396)s" p(cid:396)efe(cid:396)e(cid:374)ces. Narrow markets are more elastic: e. g. ice cream van flavours. Wide markets are inelastic: e. g. food. Goods are more elastic over longer times. The percentage change in the quantity demanded by the percentage change in the price. (cid:1870)(cid:1855)(cid:1857) (cid:1857)(cid:1864)(cid:1871)(cid:1872)(cid:1855)(cid:1872) (cid:1867)(cid:1858) (cid:1856)(cid:1857)(cid:1865)(cid:1866)(cid:1856)=(cid:3017)(cid:3032)(cid:3045)(cid:3030)(cid:3032)(cid:3041)(cid:3047)(cid:3032) (cid:3030) (cid:3041)(cid:3032) (cid:3041) (cid:3032)(cid:3044)(cid:3048)(cid:3041)(cid:3047)(cid:3047) (cid:3031)(cid:3032)(cid:3040)(cid:3041)(cid:3031)(cid:3032)(cid:3031) (cid:3017)(cid:3032)(cid:3045)(cid:3030)(cid:3032)(cid:3041)(cid:3047)(cid:3032) (cid:3030) (cid:3041)(cid:3032) (cid:3041) (cid:3043)(cid:3045)(cid:3030)(cid:3032)