7E

MARK HIRSCHEY

F U N DAM E NTALS O F

PowerPoint
Presentation
by
Charlie
Cook

MANAGERIAL
ECONOMICS
Chapter 5

Demand Analysis
and Estimation
2003 South-Western/Thomson Learning

Completely Inelastic Demand Curve: = 0

Price per unit ($)

Figure 5.1
Fundamentals of Managerial Economics 7e

2003 South-Western/Thomson Learning

52

=-

Completely Elastic Demand Curve:

Figure 5.2
Fundamentals of Managerial Economics 7e

2003 South-Western/Thomson Learning

53

Price Elasticity of Demand Varies Along

a Linear Demand Curve

Figure 5.3
Fundamentals of Managerial Economics 7e

2003 South-Western/Thomson Learning

54

Relations Among Price

Elasticity and Marginal,
Average, and Total Revenue

Figure 5.4
Fundamentals of Managerial Economics 7e

2003 South-Western/Thomson Learning

55