微观经济学（N. Gregory Mankiw）教学课件ch05.pdfVIP

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微观经济学（N. Gregory Mankiw）教学课件ch05.pdf

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C H A P T E R 5 Elasticity and Its Application P R I N C I P L E S O F Economics N. Gregory Mankiw bannannan@ © 2009 South- Western, a part of Cengage Learning, all rights reserved Elasticity  …allows us to analyze supply and demand with greater precision.  …is a measure of how much buyers and sellers respond to changes in these determinants. ELASTICITY AND ITS APPLICATION 1 The Elasticity of Demand  Price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price of that good. Demand for a good is said to be elastic if the quantity demanded responds substantially to changes in price. Demand for a good is said to be inelastic if the quantity demanded responds slightly to changes in price. ELASTICITY AND ITS APPLICATION 2 ELASTICITY AND ITS APPLICATION 3 Price Elasticity of Demand  The price elasticity of demand is computed as the percentage change in the quantity demanded divided by the percentage change in price. Price elasticity — Percentage change in Qd = of demand Percentage change in P ELASTICITY AND ITS APPLICATION 4 Price elasticity Percentage change in Qd = __ of demand Percentage change in P ELASTICITY AND ITS APPLICATION 5 ELASTICITY AND ITS APPLICATION 6 ELASTICITY AND ITS APPLICATION 7