TOPICS
- Price Elasticity of
Supply
- Cross Elasticity of Demand
- Income Elasticity of Demand
OUTCOMES
Price Elasticity of
Supply
define price elasticity
of supply
calculate and interpret the
coefficient of price elasticity of supply using the
midpoint formula
determinants of price elasticity
of supply
price elasticity of supply and the
market period, the short run, and the long
run
What is the difference between the
"Law of Supply" and the "Price Elasticity of
Supply"?
Cross Elasticity of
Demand
define cross elasticity
of demand
interpret the coefficient of cross
elasticity of demand including both its value and the
sign (substitutes, complements, and unrelated
goods)
Interpret this coefficient of
cross elasticity of demand: Eab = -2
Income Elasticity of
Demand
define income elasticity
of demand
interpret the coefficient of
income elasticity of demand including both its value and
the sign (inferior goods, normal goods, luxury
goods)
Interpret this coefficient of
income elasticity of demand: Edy = + 0.5
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