DEMAND ELASTICITY - Luiscabral.net

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Elasticity illustrated: constant elasticitypɛ = −∞|ɛ| > 1ɛ = 0|ɛ| < 1q

Answers to Chapter 4 Exercises - Luiscabral.net

5 Monopoly and Regulation - Luiscabral.net

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4 Competition, Equilibrium and Efficiency - Luiscabral.net

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Answers to Chapter 6 Exercises - Luiscabral.net

Elasticity illustrated: constant elasticitypɛ = −∞|ɛ| > 1ɛ = 0|ɛ| < 1q

Elasticity, price, and revenueRevenue ≡ R = p × q. Therefore:∆ RR≈∆ pp+ ∆ qq= ∆ pp+ ɛ ∆ pp= ∆ p (1 + ɛ)pIf price falls, then:• Revenue rises if ɛ < −1 (that is, |ɛ| > 1)• Revenue falls if ɛ > −1 (that is, |ɛ| < 1)• Revenue is unchanged if ɛ = −1

Page 4 and 5: Demand elasticity: definitionɛ≡d
Page 6 and 7: Demand elasticity: definitionɛ≡d
Page 8 and 9: ExamplesProductElasticityMilk -0.5C
Page 12 and 13: Elasticity, price, and revenueExamp
Page 14 and 15: Cross-price elasticity• Idea: How
Page 16 and 17: Example: U.S. gasoline demand (cont
Page 18 and 19: Example: gasoline demand• From 19

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