1. Alfred Marshall 1842-1924

2. I. UNIT I A. DEMAND AND SUPPLY: ELASTICITIES AND APPLICATIONS 1. Price elasticity of demand a. Calculation b. Interpretation c. Price elasticity of demand and total revenue 2. Price elasticity of supply a. Calculation b. Interpretation 3. The consequences of price ceilings 4. The consequences of price floors

3. Elasticity is a concept which measures the responsiveness of to

4. Elasticity is a concept which measures the responsiveness of sellers/producers price changes. to

5. P Q 0 D1 D2 P Q 0 D1 D2

6. P Q 0 D1 D2 P Q 0 D1 D2 S S

7. P Q 0 D1 D2 P Q 0 D1 D2 S S

8. P Q 0 D1 D2 P Q 0 D1 D2 S S

10. A period of time so short that it is impossible for producers to respond to price changes. Market Period

11. A period of time so short that it is impossible for producers to respond to price changes. Supply Of Tuna Per Day From This Boat Supply of Tuna Per Day From This Boat With Storage Option S Market Period

12. A period of time too short for....plant size to change.....the number of firms in an industry to change Short run

13. A period of time too short for....plant size to change.....the number of firms in an industry to change Supply of tuna in the short run S Short run

14. A period of time too short for....plant size to change.....the number of firms in an industry to change Supply of tuna in the short run S WITH EASY, CHEAP STORAGE Short run

15. A period of time long enough......for plant size to change.......the number of firms to change Long run

16. A period of time long enough......for plant size to change.......the number of firms to change Long run

17. A period of time long enough......for plant size to change.......the number of firms to change Long run

18. A period of time long enough......for plant size to change.......the number of firms to change

19. A period of time long enough......for plant size to change.......the number of firms to change Long run

20. A period of time long enough......for plant size to change.......the number of firms to change Long run

21. A period of time long enough......for plant size to change.......the number of firms to change Long run

22. A period of time long enough......for plant size to change.......the number of firms to change Long run

23. A period of time long enough......for plant size to change.......the number of firms to change Long Run Supply S Long run