导图社区 弹性和它的应用
Elasticity and its APPlication,include Price Elasticity of Demand/Price Elasticity of Supply/Other Demand Elasticities.
编辑于2022-03-27 19:28:48这是一篇关于resources and trade的思维导图,This model shows that comparative advantage is influenced by
we begin with a general introduction to the concept of compara- tive advantage and then proceed to develop a specific model of how comparative advantage determines the pattern of international trade.
这是一篇关于Production and cost的思维导图,主要包括Types of Firms、Cost and Profit、Production、 Short-Run Production Cost、Long-Run Production Cost。
社区模板帮助中心,点此进入>>
这是一篇关于resources and trade的思维导图,This model shows that comparative advantage is influenced by
we begin with a general introduction to the concept of compara- tive advantage and then proceed to develop a specific model of how comparative advantage determines the pattern of international trade.
这是一篇关于Production and cost的思维导图,主要包括Types of Firms、Cost and Profit、Production、 Short-Run Production Cost、Long-Run Production Cost。
Elasticity and its Application
Price Elasticity of Demand
elasticity
measures the magnitude of the responsiveness of any variable
Calculating Price Elasticity of Demand
The price elasticity of demand=demand elasticity
definition :a measure of the responsiveness of the quantity demanded of a certain good to a change in its price
calculate : price elasticity of demand= percentage change in quantity demanded/percentage change in price
the quantity demanded and the price are inversely related
the elasticity will always be a negative number
the greater the absolute value of the number,the more sensitive quantity is to price
two points on the demand curve demands on the direction of movement
Ranges of Demand Elasticity
Range 1: |E|>1
demand is elastic
demand is relatively sensitive to price changes
Range 2 : |E|<1
demand is relatively inelastic
demand is relatively insensitive to price changes
Range 3: |E|=1
demand is unitary elastic
demand is neither elastic nor inelastic
Elasticity along a Straight-Line Demand Curve
in general
as we move upward along a straight-line demand curve ,the same change in quantity corresponds to larger and larger percentage changes in quantity.
Elasticity and Total Revenue
Total revenue
Definition: the price per unit multiplied by the number of units sold= P*Q
If the percentage decrease in quantity demanded exceeds the percentage increase in price,the total revenue will fall
If the percentage decrease in quantity demanded is less than the percentage increase in price,the total revenue will rise
If demand is exactly unitary elastic,a rise in price will leave total revenue unaffected
If demand is inelastic,a price increase will actually raise total revenue
Constant Elasticity Demand Curves
Perfectly Inelastic Demand Curve
Perfectly Elastic Demand Curve
Perfectly Elastic Demand Curve
Unitary Elastic Demand Curve
Determinants of Demand Elasticity
Auailability of substitutes
the greater the availability of substitutes,the more elastic the demand
the number of substitutes depends partly on how the good or service is defined
the availability of substitutes depends on whether a good is a necessity or a luxury
Proportion of the consumer's income spent on the good
the greater the proportion of the consumer's income spent on the good,the more elastic is demand for that good
Time
Price Elasticity of Supply
Calculating Price Elasticity of Supply
price elasticity of supply=percentage change in quantity supplied/percentage change in price
Ranges of Supply Elasticity
Range 1: E>1
supply is elastic
Range 2: E<1
supply is inelastic
Range 3: E=1
supply is unitary elastic
two extreme cases
Perfectly inelastic supply
the price elasticity of supply is equal to zero because quantity supplied is entirely unresponsive to price
Perfectly elastic supply
producers can offer for sale a practically unlimited amount of the good or service at the currunt price
Determinants of Supply Elasticity
Time
the longer the period of adjustment is to a change in price,the higher the price elasticity of supply will be.
Capacity
Availability of inputs
Other Demand Elasticities
Income Elasticity of Demand
=percentage change in quantity demanded/percentage change in income
Cross-price Elasticity of Demand
measures how responsive quantity demanded of one good is to a change in the price of another good.
=percentage change in quantity demanded of X/percentage change in price of Y