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7 Cards in this Set
- Front
- Back
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Price elasticity of demand
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E=(dQ/dP)(P/Q)
or E=P/(P-A) |
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If demand is in the form of:
Qd=AP^b, then... |
E = b
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TR & MR
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1) TR = P(Q) = [f(q)](Q)
2) MR = dTR/dQ |
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TR is maximized where?
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demand is unitary elastic (E=1)
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___ is ____ as steep as the demand curve
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MR; twice
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income elasticity of demand
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Em = (dQ/dM)(M/Q)
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cross price elasticity
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Exr = (dQx/dPr)(Pr/Qx)
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