MATH 203 Lecture Notes - Lecture 4: Demand Curve, Longrun

• School: McGill University
• Department: Mathematics & Statistics (Sci)
• Course: MATH 203
• Professor: Nagham Sayour

Document Summary

Demand is said to be elastic when the demanded is very responsive to a change in the products own price. Demand is inelastic if quantity demanded is very unresponsive to changes in its price. Elasticity is related to the slope of the demand curve, but it is not exactly the same. The flatter the curve, the more elasticity. The the and an demand. change in quantity is much less than change in price therefore this is inelastic. The measurement of price elasticity percentage change in quantity demanded n = ------------------------------------------------------------------- percentage change in price. Demand elasticity is negative, but economists usually emphasize the absolute value. Elasticity usually measures the change in p and q relative to some base values of p and q. Elastic demand - when quantity demand is very sensitive to change in price. This means that the n has to be greater than 1. Because the change in quantity is greater than the change in price.