TAILIEUCHUNG - Lecture Business economics - Lecture 4: Elasticity

In this chapter you will learn the meaning of the elasticity of demand, examine what determines the elasticity of demand, learn the meaning of the elasticity of supply, examine what determines the elasticity of supply, apply the concept of elasticity in three very different markets. | Review of the previous lecture The supply curve shows how the quantity of a good supplied depends upon the price. According to the law of supply, as the price of a good rises, the quantity supplied rises. Therefore, the supply curve slopes upward. In addition to price, other determinants of how much producers want to sell include input prices, technology, expectations, and the number of sellers. If one of these factors changes, the supply curve shifts. Market equilibrium is determined by the intersection of the supply and demand curves. At the equilibrium price, the quantity demanded equals the quantity supplied. The behavior of buyers and sellers naturally drives markets toward their equilibrium. To analyze how any event influences a market, we use the supply-and-demand diagram to examine how the even affects the equilibrium price and quantity. Lecture 4 Elasticity Instructor: Abbas Course code: ECO 400 Lecture Outline Elasticity of demand Elasticity of supply .

• Kinh tế học
• Business economics
• Lecture Business economics
• Business applications of economics
• Open economy
• Competitive markets
• Elasticity of demand
• Economic Models
• Principles of economics
• Economics of agriculture
• Monopolistic competition
• Macroeconomic policy
• Supply curve
• Consumer choice
• Competitive firms
• Imperfect competition
• Gross domestic product
• Financial intermediaries
• Productivity growth
• Natural rate of unemployment
• Labor force
• Money supply