ECO 1104 Study Guide - Midterm Guide: Dependent And Independent Variables, Free Market, Price Floor

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: David Gray

Document Summary

The questions are different but the answer are similar. Equation for elasticity: numerator response variable, dinormator provocation variable, without the percentage, it only the price run over the slope. What factors give rise to etc. being elastic: good is luxury, long time horizon. Time goes on, people can find substitutes: scope of the market. Board market has fewer substitutes (e. g. food: substitutes available, spend large share of income. When it takes a large part of your income, elasticity rise t = price elasticity of supply: % change of quantity supply / % change of price.