Demand Elasticity: Chapter 4 Section 3.

Slides:

Advertisements

Similar presentations

A Microeconomics Topic

Advertisements

Demand Shifts. Law of Demand  Demand Curves shift when quantity demanded changes –Causes  Income –Normal good –Inferior good  Consumer expectations.

Warm Up Questions: If you were a business owner and you wanted to increase your income which would you choose - increase your prices or have a sale? Is.

Economics 211 – Clicker Questions

Chapter 5 Some Applications of Consumer Demand, and Welfare Analysis.

A B 1.Calculate the arc own price elasticity of demand between the points A and B? 2.Is the elasticity different if your go from B to A? 3.Elastic, inelastic,

Chapter 5: Demand and Supply Elasticity. Elasticity of Demand  Also called Price Elasticity of Demand  Measures consumer responsiveness to change in.

Price Elasticity of Demand Price Elasticity and Total Revenue Determinants of Price Elasticity of Demand Elasticity of Demand.

Elasticity of Demand Unit 4.3. What is Elasticity of Demand? Elasticity is a measure of the amount of change in demand due to a change in price. How responsive.

Economics Vocabulary Chapter 3

1 Essential Question: Explain the term “Elasticity of Demand, select two different products (one with elastic demand and one with inelastic demand) and.

Elasticity. Price elasticity of demand Measures the responsiveness to a change in price; that is, will the quantity demanded change if the price of the.

Chapter 5: Elasticity. Elasticity A general concept used to quantify the response in one variable when another variable changes.

Elasticity of Demand Chapter 4 Section 3.

DEMAND UNIT 2: MICROECONOMIC CHAPTER 4. SEC. 1 WHAT IS DEMAND? What is Microeconomics? (individuals, business, organizations) What is Macroeconomics?

Chapter 4: Demand Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 4, Section 3 Objectives 1.Explain how to calculate elasticity of demand.

Chapter 4:Demand What is Demand? Factors affecting Demand Elasticity of Demand What is Demand? Factors affecting Demand Elasticity of Demand.

Chapter 3 Elasticity of Demand. Elasticity – the degree to which changes in price affect the quantity demanded by consumers Elastic Goods - Small change.

Chapter 4 demand.

Elasticity of Demand The degree to which price effects demand.

ECONOMICS CHAPTER 3, SECTION 3 Elasticity of Demand.

Demand Elasticity. Why is understanding elasticity of demand important? The Law of Demand states what? It does not tell us how large or small of a change.

Elasticity of Demand. Definitions Elasticity: –The extent to which changes in price cause a change in quantity demanded or supplied. –How responsive quantity.

Effect of a tax on price and quantity S + tax S O P1P1 Q1Q1 D P Q.

Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.

Chapter 4 Section 3 Elasticity of Demand. Elasticity of demand is a measure of how consumers react to a change in price. What Is Elasticity of Demand?

Chapter 4: Demand Opener. Copyright © Pearson Education, Inc.Slide 2 Chapter 4, Opener Essential Question How do we decide what to buy.

CHAPTER 4 DEMAND. Section 1: What Is Demand? Main Idea: Demand is a willingness to buy a product at a particular price. Objectives: Describe and illustrate.

Demand What is demand? What is demand? The desire, ability, and willingness to buy a product. The desire, ability, and willingness to buy a product. Law.

Memorise these 12 goods or services Press space bar to begin.

Unit 2 – Understanding Markets CHAPTERS 4, 5, 6, & 7.

Select a business in our community that you patronize (go to). Note down the following: 1.What is the name and location of the business? 2. Why do you.

04 Elasticity Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Chapter 4 Section 3 Elasticity of Demand

Elasticity of Demand Understand what it is

Elasticity of Demand Chapter 4 Section 3.

Price Elasticity of Demand

Elasticity of Demand Econ 9/26.

Chapter 4 Section 3 Elasticity of Demand

Elasticity of Demand.

Test Yourself Calculate the arc own price elasticity of demand between the points A and B? Is the elasticity different if your go from B to A? Elastic,

Elasticity of Demand Pgs. 101 – 107

Economics Chapter 4 Review.

© EMC Publishing, LLC.

Chapter 4- Microeconomics

Elasticity of Demand Chapter 4 Section 3.

What’s Happening with Demand

Economics Chapter 4 Review.

Chapter 4: Demand Section 1

Demand THursday, February 3rd.

Chapter 4 and 5 Review.

Holt Economics 12/31/2018 CHAPTER 3 Demand Chapter 3.

Elasticity of Demand Chapter 4 Section 3.

DEMAND ELASTICITY DEMAND ELASTICITY: extent to which changes in price cause changes in quantity demanded.

Elasticity of Demand.

Factors Affecting Demand:

What’s Happening with Demand

Elasticity of Demand.

Change in Demand.

Demand Chapter 4.

Review with your Partners

Demand Demand vs. Effective Demand Starting a business - What next?

What’s Happening with Demand

Chapter 4 Changes in Demand.

Friday October 3, 2014 Mr. Goblirsch – Economics

Review with your Partners

Section 2: Changes in Demand

Presentation transcript:

Demand Elasticity: Chapter 4 Section 3

Elasticity measures how sensitive consumers are to price changes.

Elastic- when a change in price causes a large change in demand.

Inelastic -when a change in price causes a small change in demand.

Unit elastic when a change in price causes a proportional change in demand.

Demand is elastic if the answer to the following questions are “yes.” 1. Can the purchase be delayed? 2. Are adequate substitutions available? 3. Does the purchase use a large portion of income?