ECO 2030. Principles of Economics-Price Theory

Elasticity

Demand

1. Price elasticity of demand
2. Determinants of demand elasticity (availability of substitutes, necessities vs. luxuries, definition of the market, time)
3. Midpoint method (e_d = %ΔQ^d � %ΔP = click here for formula)
4. Elastic and inelastic demand
5. Total revenue and price elasticity

Other Elasticities

1. Income elasticity
2. Cross-price elasticity

Supply