Unit 2: Elasticity, Consumer Choice, Costs

Lesson 4a: Price Elasticity of Demand and Tax Incidence

Assignments: Readings

pp. 134-143, (19th, 75-84), "Price Elasticity of Demand'

pp. 146-147, (19th, 86-87), "Last Word - Elasticity and Pricing Power: Why Different Customers Pay Different Prices"

pp. 416-419, (19th, 347-354), "Tax Incidence and Efficiency Loss"

Lecture Outline

 

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Lesson 4a