Explain elasticity coefficient, Microeconomics

The elasticity coefficient is a number measured using price and quantity data to verify how responsive consumers are to changes in the price of a commodity.  The elasticity coefficient may be measured in two distinct ways. Measuring responsiveness at a specific point along a demand curve.  The other method is using the mid-point of the dissimilarity in the price and the mid-point in the dissimilarity of the quantity numbers.  Because the midpoints formula cuts down on the confusion of which prices and quantities are to be used, it is the only coefficient we will use in this course.

 

Posted Date: 4/19/2013 5:40:49 AM | Location : United States







Related Discussions:- Explain elasticity coefficient, Assignment Help, Ask Question on Explain elasticity coefficient, Get Answer, Expert's Help, Explain elasticity coefficient Discussions

Write discussion on Explain elasticity coefficient
Your posts are moderated
Related Questions

Iso-quant: The dots in the above Figure denotes the various combinations of (L, K) that the producer can pick up from form to produce. Among these combinations, there can be t

What is Nancy’s lifetime income as a function of her level of schooling, S? 2. What is Nancy’s lifetime income if she gets no schooling? What is it if she goes to school for all 60

what are the solutions to cost push inflation

According to the Linder theory ,trade will occur in goods that have overlapping demand. With aid of a graph ,illustrate this theory and its implications

illustrate and discuss the implications of various market structures (competitive and non competitive) for price determination

methylcyclohexene + HI by the catalyst of H3PO4

Development Banks Banks that function as coordinating and intermediary industries to raise capital attract investment, and giving technical assistance for the economic develop

Demand Function is Homogeneous of Degree Zero: Mathematical Presentation  we will show that demand function is homogeneous of degree zero in prices and money income. In o