The subtopics for each lecture are related to the chapters in the textbook. For me, i feel that it is because business flights has a higher degree of necessity as compared to economy flights meant for leisure. Demand can be classified as elastic, inelastic or unitary. Economics lecture notes chapter 3 elasticity of demand and supply will be taught in economics tuition in the fourth and fifth weeks of term 1. Students can refer to economics a singapore perspective for the diagrams.
Elasticities of demand outline 1 price elasticity of demand mit. Elasticity is independent of the units used to measure price and quantity. The economic incidence of a tax independent of its legal. Price elasticity of demand and price elasticity of supply article. Given the supply schedule, greater the elasticity of demand for. Law of demand and elasticity of demand 29 elasticity of demand it answers the question by how much. In economics, elasticity is used to determine how changes in product demand and supply relate to changes in consumer income or. Graphic organizer as you read about price elasticity. This is a numerical based chapter on elasticity of demand, price elasticity of demand and its measurements, also discussing the factors affecting it.
For example, the elasticity of demand for latte is 2. Elasticity of demand is defined as the responsiveness of the quantity demanded of a good to change on one of the variables on which demand depends. Elasticity of demand is the ratio of two percentages and so elasticity is a number with no units. Comprehensive, pointwise and updated study material, youtube lecture handouts, and exam notes. The lecture notes shown below are from the one of the discussion sections for the course. Elasticity of demand cbse notes for class 12 micro economics. In fine, elasticity of demand is a concept which has much applicability as far as business decisionmaking is concerned and is, therefore, of much importance in modern economics. Price elasticity of demand is how economists measure the responsiveness of quantities demanded to changes. Elasticity is a concept with broad applications in economics. Elasticity and its application principles of economics, 8th. The price elasticity of demand ped for a good is a measure of the degree of responsiveness of the quantity demanded to a change in the price, ceteris paribus.
Elasticity allows us to compare the demands for different goods. According to economic theory, the primary determinant of the price elasticity of demand is the availability of substitutes. It is the percentage change, usually in quantity, due to. Economics study material for nta ugc net updated for. These lecture notes were prepared by xingze wang, yinghsuan lin, and frederick jao specifically for mit opencourseware. Free pdf download of cbse class 11 economics revision notes and short key notes to score more marks in your exams, prepared by our expert economics teachers. Elastic demand e lasticity of demand is an important variation on the concept of demand. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. Econ 101 elasticity notes econ101 ualberta studocu. In fact, most businessmen should try to form as precise an idea of elasticity as possible. Perfect for acing essays, tests, and quizzes, as well as for writing lesson plans. Cbse notes cbse notes micro economics ncert solutions micro economics.
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