Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Elasticity on Demand

Elasticity on Demand

Ratings: (0)|Views: 101|Likes:
Published by roshaun007
Elasricity of demand
Elasricity of demand

More info:

Published by: roshaun007 on Sep 13, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPTX, PDF, TXT or read online from Scribd
See more
See less

09/13/2010

pdf

text

original

 
We may have some applications of the above method of measuring elasticity on demand curves of differentshapes:
 Y  X O SMQ PriceQuantity 
 
(a) Two straight line demand curves which are neither parallel nor intersecting. This method of measuringelasticity helps to compare the elasticity of demandcurves, and shows the flexibility of the notion thatelasticity depends upon the slope of a curve. In thefigure we have taken two straight line demandcurves NM and NS. If we draw a dotted line passingthrough these curves and touching the Y-axis atpoint T, the elasticity at point Q on the NM curveaccording to the point formula is:
 
,
being sides of right angle ¨ONMSimilarly, elasticity at point V on the NS curve isThus, elasticity is equal on both points Q and V.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->