Elasticity

Descrição

Leaving Cert. Economics Elasticity
Niamh Browne
Slides por Niamh Browne, atualizado more than 1 year ago
Niamh Browne
Criado por Niamh Browne mais de 8 anos atrás
20
0

Resumo de Recurso

Slide 1

Slide 2

    Price Elasticity of Demand (PED)
    MEASURES PROPORTIONATE CHANGE IN QUANTITY DEMANDED FOR A GOOD CAUSED BY THE PROPORTIONATE CHANGE IN THE PRICE OF THE GOOD ITSELFFORMULA:     TOTAL QUANTITY   X       PRICE 1 + PRICE 2                  TOTAL PRICE         QUANTITY 1 + QUANTITY 2RESULT: > 1 = ELASTIC - PRICE INCREASE = DEMAND DECREASE  - PRICE INCREASE = TOTAL REVENUE DECREASE < 1 = INELASTIC - P. INREASE = LITTLE CHANGE - P. INCREASE = TR INCREASE = 1 = UNITARY ELASTIC - P. INCREASE 10% = DEMAND DECREASE 10% - P. INCREACE = TR DECREASE O  = PERFECTLY INELASTIC - P.INCREASE = NO CHANGE INFINITY = PERFECTLY ELASTIC - P. INCREASE = DEMAND -> O NEGATICE RESULT: OBEYS LAWS OF DEMAND POSITIVE RESULT: DOESN'T OBEY LAWS OF DEMAND, EG. GIFFEN GOOD

Slide 3

    FACTORS AFFECTING PED
    SUBSTITUTE GOODS - MORE SUBSTITUTES = GREATER ELASTICITY COMPLEMENTARY GOODS - CHEAPER OF GOODS =INELASTIC LUXURY GOODS = ELASTIC NECESSITIES = INELASTIC BRAND LOYALTY = INELATIC DURABILITY - PRICE INCREASES, EXTEND LIFE OF CURRENT MODEL = ELASTIC

Slide 4

Semelhante

Using GoConqr to study Economics
Sarah Egan
Economics
Emily Fenton
Economics - unit 1
Amardeep Kumar
AN ECONOMIC OVERVIEW OF IRELAND AND THE WORLD 2015/16
John O'Driscoll
Using GoConqr to teach Economics
Sarah Egan
Functions of Money
hannahcollins030
Comparative advantage
jamesofili
GCSE - Introduction to Economics
James Dodd
Market & Technology Dynamics
Tris Stindt
PMP Formulas
Krunk!
Aggregate Supply, Macroeconomic Equilibrium, The Economic Cycle, Economic Growth, Circular Flow and Measuring National Income
Hannah Nad