slide1
Download
Skip this Video
Download Presentation
Elasticity

Loading in 2 Seconds...

play fullscreen
1 / 5

Elasticity - PowerPoint PPT Presentation


  • 133 Views
  • Uploaded on

Elasticity. OF DEMAND. WHAT WILL CONSUMERS DO WHEN PRICES CHANGE??? How much more will consumers buy if the price falls? How much less will consumers buy if the price rises?. ELASTICITY OF DEMAND : Measurement of consumers’ sensitivity to price. ELASTIC :

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Elasticity' - waldo


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Elasticity

OF

DEMAND

slide2

WHAT WILL CONSUMERS DO WHEN PRICES CHANGE???How much more will consumers buy if the price falls?How much less will consumers buy if the price rises?

elasticity of demand measurement of consumers sensitivity to price
ELASTICITY OF DEMAND:Measurement of consumers’ sensitivity to price

ELASTIC:

Buyers are responsive to price changes

INELASTIC:

Buyers are not responsive to price changes

determinants of demand elasticity
Determinants of Demand Elasticity:
  • Availability of substitutes
  • Price relative to income
  • Necessities vs. Luxuries
  • Time needed to adjust to a price change
elastic or inelastic
Elastic or Inelastic?
  • Sugar
  • New furniture
  • New car
  • Gasoline
  • Food
  • Encyclopedia
  • 2% Milk
  • Sailboat
  • Socks
  • Aspirin
  • Diet Coke
  • Gold Jewelry
  • Insulin
ad