Principles of economics, casefairoster, eleventh edition 876541 ppt. Economics is the study of rationing systems and how scarce resources are allocated to fufill the infinite wants of consumers. Microeconomics powerpoint presentations economics mr. This is perhaps the most important microeconomic concept that you will come across in your initial studies of economics. Highquality powerpoint presentation in html5 format.
Managerial economics elasticity elasticity a measure of the responsiveness of one variable to changes in another variable it is the percentage change in one. The bulk modulus is negative because of decrease in v. When a fall in price leads to an increase in a firms total revenue, demand is elastic. Each of the equations for the elasticity of demand measures the relationship between one specific factor and demand.
These lecture notes were prepared by xingze wang, yinghsuan lin, and frederick jao specifically for mit opencourseware. Economics 2001 principles of microeconomics chapter 4 elasticity junqiushi ren department of. Find powerpoint presentations and slides using the power of, find free presentations research about law of demand ppt. Because most goods and services are subject to the. Chapter 5 elasticity 1 of 2 the model of supply and demand tells us a good deal about how a change in the price of a good affects behavior. Review each slide and use the speaking notes as a guide. Elasticity is an economics concept that measures the responsiveness of one variable to changes in another variable. With elastic demand a change in price moves in the opposite direction from the change in revenue. From tires to toothpicks 1 powerpoint slide speaking notes directions. 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 is independent of the units used to measure price and quantity. White plains high school 550 north street white plains, ny 10605 ph. Price elasticity of supply revision economics tutor2u. The key is to understand the formula for calculating the coefficient of price elasticity, the factors that affect.
Micro economics microeconomics is the study of the behavior of markets, workers, households and firms and how they make economic decisions about the allocation of scarce resources. Elasticity and its application principles of economics, 8th edition n. It is the percentage change, usually in quantity, due to. Powerpoint slide on demand and supply compiled by anwesha ghosh. A pdf version of the presentation is also provided to get a glimpse of the qualitycontent. Presentation template powerpoint 2007 national treasury. His blog features short articles relating to economics teaching, including news, data, examples, and illustrations. Price elasticity income elasticity cross elasticity advertisement of promotional elasticity types of elasticity. In such cases, there is a bulk modulus b of elasticity. Consumers are highly responsive to changes in price. This section provides lecture notes from the course. View and download powerpoint presentations on principles of economics chapter 5 ppt.
Elasticity of demand lesson 3 economics demand elasticity extent to which change in price causes change in the quantity demanded. A free powerpoint ppt presentation displayed as a flash slide show on id. Jul 04, 20 economics is the study of rationing systems and how scarce resources are allocated to fufill the infinite wants of consumers. Ppt micro and macro economics powerpoint presentation. Find powerpoint presentations and slides using the power of, find free presentations research about principles of economics chapter 5 ppt. Elasticity the last way to determine elasticity of demand is the total revenue test.
Sep 06, 20 powerpoint presentations provided by premium powerpoint created by ron cronovich for use with n. Cross elasticity ppt of eco free download as powerpoint presentation. If current available resources become more productive. Thus, the sensitiveness or responsiveness of demand to change in price is as called elasticity of demand 4. To calculate the price elasticity of demand, one should express the changes in price and quantity demanded as.
Demand is elastic when a change in price causes a relatively larger change in quantity demanded. Economics books our free economics books for students will help you understand the principles of economics. Elasticity of demand the midterm 1 practice exam will be posted on course website classes exams on wednesday evening. The subtopics for each lecture are related to the chapters in the textbook. Then, when the file opens in powerpoint, choose slide show from the view menu. This batch of ppts elaborate on the laws and assumptions of two basic theories in economics the law of demand and the law of supply. Emphasis is placed on calculating and interpreting values, determinants. Elasticity of demand ppt demand price elasticity of demand.
Volume stress f a b volume strain v v the bulk modulus is negative because of decrease in v. Powerpoint slide on elasticity of demand compiled by meera\s classes. The extended of response of demand for a commodity to a given change in price, other demanded determinants remaining constant, is termed as the price elasticity of demanded. The lecture notes are from one of the discussion sections for the course. It is the percentage change, usually in quantity, due to a percentage change in something else. To find answers to these questions, we need to understand the concept of elasticity.
Emphasis is placed on calculating and interpreting values, determinants, impact on total revenue as well as other real w. Introduction topic 2 established the di rection of changes in demand and supply to a change in price a further question is the size of the change elasticity measures the sensitivity or responsiveness of these changes definition elasticity measures the change in one variable in response to a change in another variable. Elastic demand e lasticity of demand is an important variation on the concept of demand. Definition of price elasticity of demand the change in the quantity demanded of a product due to a change in its price is known as price elasticity of demand. Read up on for instance microeconomics, macroeconomics and. These notes are also embedded in the powerpoint slides. To estimate the socioeconomic impact of imposing a tax on sugary. Price elasticity of demand is how economists measure the responsiveness of.
Department of economics, school of business and management sciences. Explaining price elasticity of demand economics tutor2u. In microeconomics, supply and demand is an economic model of price determination in a market. An elastic demand is one in which the change in quantity demanded due to a change in price is large. Ed dolan teaches global macroeconomics, managerial economics, money and banking, and other courses in several european countries. World economics price elasticity of demand can be easily calculated by the formulas. Economics 2001 principles of microeconomics chapter 4. The adobe flash plugin is needed to view this content. Cross elasticity ppt of eco demand elasticity economics. Microeconomics based on principles of economics 5ed n. Each post has a link to a free set of powerpoint slides that can potentially be used in teaching. Elasticity ppt free download as powerpoint presentation. Suppose you drop two items from a secondfloor balcony. The above diagram shows two areas of surplus created at the market clearing price op.
Law of demand and elasticity of demand 29 elasticity of demand it answers the question by how much. Ppt on introduction to economics powerpoint presentations. Jun 23, 2017 highquality powerpoint presentation in html5 format. Check the following websites to see where i found the ppp presented here. Demand can be classified as elastic, inelastic or unitary. Elasticity of demand ppt free download as powerpoint presentation. Lecture 4 agsm2004 page 22 price elasticity of supply only for pricetaking suppliers monopolists do not have supply cur ves. Calculate the income elasticity of demand and the crossprice elasticity of demand. Goods for which price elasticity is less than 1 is called inelastic. Read up on for instance microeconomics, macroeconomics and contemporary economics. Elasticity and its application principles of economics, 8th.
Supply supply is the willingness and ability of producers to make a specific quantity of output available to consumers at a particular price over a given period of time. For example, the elasticity of demand for latte is 2. Cross price elasticity definition substitutes and complements 4. If additional productive resources are made available. The first item is a tennis ball, and the second item is a brick. For example, we can compare the demands for latte and baseball tickets. Elasticity measures how one variable responds to a change in an other variable, namely the percentage change in one variable resulting a one percentage change in another variable. Principles of economics, principles of macroeconomics, brief principles of.
In economic analysis,the concept of price elasticity of demand. The study of how resources are allocated to various uses in society. You must have access to powerpoint 97 or higher or. Scribd is the worlds largest social reading and publishing site. Price elasticity of demand revision economics tutor2u. Total expenditures test compares the direction of a price change to the direction of change in total revenue or total expenditures. Ppt micro and macro economics powerpoint presentation free to download id. Elasticity measures the sensitivity or responsiveness of these changes definition elasticity measures the change in one variable in response to a change in another variable we look at. Lecture notes principles of microeconomics economics. Principles of economics, principles of macroeconomics, brief principles of macroeconomics, essentials of economics. Imagine going to your favorite coffee shop and having the waiter inform you the pricing has changed.
Elasticity is a concept with broad applications in economics. The above diagram shows two areas of surplus created at. Aesthetically designed presentation with relevant links to youtube videos and animated diagrams. Powerpoint presentations were edited by ryan davis. Kinds of price elasticity of demand perfectly elastic demand. Demand and elasticity lecture is covered by students who are doing foundations of economics module. Lecture notes on elasticity of substitution ted bergstrom, ucsb economics 210a october 26, 2015 todays featured guest is \the elasticity of substitution. W hen the percentage change in quantity demand is greater than the percentage change in income the income elasticity of demand is greater than unity. Powerpoint presentations provided by premium powerpoint created by ron cronovich for use with n. View and download powerpoint presentations on law of demand ppt. A powerpoint lecture covering the various types of elasticity. The crossprice elasticity of demand measures the responsiveness of.
The dictionary definition of equilibrium is a state of physical balance, or put more simply, a state of rest. Marketsmeaning and features market means interaction of buyers and sellers in order to carry on transactions of goods and services. Elasticity allows us to compare the demands for different goods. Join s of fellow economics teachers and students all getting the tutor2u economics teams latest resources and support delivered fresh in their inbox every morning. Jul 04, 20 download microeconomics presentation transcript. Demand elasticity is a measure that shows how a change in quantity demanded responds to a change in price. Ppt elasticity powerpoint presentation free to download. Price elasticity of demand measures the responsiveness of demand after a change in a products own price. If more productive ways of combining resources are found. Chapter 4 elasticities of demand and supply 1 the price elasticity of demand measures the sensitivity of the quantity demanded of a good to a change in its price it is defined as. Price elasticity of demand, income elasticity of demand, cross elasticity of demand, and price elasticity of supply. Elasticity of a function of a single variable before we meet this guest, let us spend a bit of time with a slightly simpler notion, the elasticity of a a function of a single variable. Elasticity of demand is the ratio of two percentages and so elasticity is a number with no units.