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5 Cards in this Set
- Front
- Back
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Elasticity of demand |
- Percentage change in quantity - - - - - - - - - - - - - - - - - - - - - - - - - Percentage change in price |
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Elasticity of supply |
Percentage change in quantity -------------------------------------------- Percentage change in price |
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Point elasticity at (P, Q) |
a * P/Q |
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How do you calculate price elasticity |
Calculate how much 1% change in price changes the percentage of demand |
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How do you calculate cross elasticity |
- Percentage change in QUANTITY of good 1 -------------------------------------------- Percentage change in the PRICE of good 2 If it is negative, they are complement If it is positive, they are substitute |
