ECO101H1 Chapter Notes - Chapter 4: Midpoint Method, Root Mean Square, Normal Good
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ECO101H1 Full Course Notes
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Measure responsiveness to changes in qd to changes in its own price hurdles. Is 100 a big or small quantity change: 100 medium cups of co ee = 35,488. 24 ml solution. Given a price change, demand is elastic if if the resulting |% qd| is greater than. Given a price change, demand is inelastic if if the resulting |% qd| is less than. Wednesday, september 27, 2017: e > 1 : elastic. E = 0 : perfectly inelastic determinants of (own-price) elasticity of demand two observations. Price elasticity measures the ability and willingness to substitute away from a good (at current prices) when faced with an increase in price. Doing without is always a good substitute, albeit not always a particularly good one the one rule you need to remember. Necessities vs. luxuries: necessities are inelastic and luxuries are elastic.