COMM 220 Chapter Notes -Demand Curve, Economic Surplus, Consumer Spending
Document Summary
Key concepts and topics: elasticity of demand, consumer surplus. Elasticity of demand: price elasticity of demand. Measures the percentage change in the quantity demanded resulting from a one-percent change in price. Qd is relatively unresponsive to a price change (i. e. , total expenditure (p*q) when p . Qd is relatively responsive to a price change (i. e. , expenditure (p*q) when p . Pe is constant along the entire demand curve demand curve bows inward (not linear) P q but no change in total expenditure. , at every price, the total expenditure (p*q) is constant along the demand curve d. P , expenditure p , expenditure. Point elasticity of demand: price elasticity of demand at a particular point on the demand curve, Arc elasticity of demand: price elasticity of demand calculated over a range. , where p and q is the average of the initial of prices, and final price/quantity (when is arc elasticity preferred to point elasticity?)
