rights reserved. Requests for permission to make copies of any
part of the work should be mailed to:Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.
Разделы презентаций
- Разное
- Английский язык
- Астрономия
- Алгебра
- Биология
- География
- Геометрия
- Детские презентации
- Информатика
- История
- Литература
- Математика
- Медицина
- Менеджмент
- Музыка
- МХК
- Немецкий язык
- ОБЖ
- Обществознание
- Окружающий мир
- Педагогика
- Русский язык
- Технология
- Физика
- Философия
- Химия
- Шаблоны, картинки для презентаций
- Экология
- Экономика
- Юриспруденция
Elasticity and Its Application
Содержание
- 1. Elasticity and Its Application
- 2. Elasticity . . . … is a
- 3. Price Elasticity of DemandPrice elasticity of demand
- 4. Determinants of Price Elasticity of DemandNecessities versus LuxuriesAvailability of Close SubstitutesDefinition of the MarketTime Horizon
- 5. Determinants of Price Elasticity of DemandDemand
- 6. Computing the Price Elasticity of DemandThe price
- 7. Computing the Price Elasticity of DemandExample: If
- 8. Computing the Price Elasticity of Demand Using
- 9. Computing the Price Elasticity of DemandExample: If
- 10. Ranges of ElasticityInelastic DemandQuantity demanded does not
- 11. Computing the Price Elasticity of DemandDemand is price elastic$54DemandQuantity1000Price50
- 12. Ranges of ElasticityPerfectly InelasticQuantity demanded does not
- 13. A Variety of Demand CurvesBecause the price
- 14. Perfectly Inelastic Demand - Elasticity equals 0QuantityPrice2. ...leaves the quantity demanded unchanged.
- 15. Inelastic Demand - Elasticity is less than 1QuantityPrice
- 16. Unit Elastic Demand - Elasticity equals 1QuantityPrice
- 17. Elastic Demand - Elasticity is greater than 1QuantityPrice
- 18. Perfectly Elastic Demand - Elasticity equals infinityQuantityPrice
- 19. Elasticity and Total RevenueTotal revenue is the
- 20. $4DemandQuantityP0PriceP x Q = $400 (total revenue)100Elasticity and Total Revenue
- 21. Elasticity and Total RevenueWith an inelastic demand
- 22. Elasticity and Total Revenue: Inelastic Demand$3Quantity0Price80Revenue =
- 23. Elasticity and Total RevenueWith an elastic demand
- 24. Elasticity and Total Revenue: Elastic DemandDemandQuantity0Price$450DemandQuantity0PriceRevenue =
- 25. Computing the Elasticity of a Linear Demand Curve
- 26. Income Elasticity of DemandIncome elasticity of demand
- 27. Computing Income Elasticity
- 28. Income Elasticity - Types of Goods -Normal
- 29. Income Elasticity - Types of Goods -Goods
- 30. Price Elasticity of SupplyPrice elasticity of supply
- 31. Ranges of ElasticityPerfectly ElasticES = ¥Relatively ElasticES > 1Unit ElasticES = 1
- 32. Ranges of ElasticityRelatively InelasticES < 1Perfectly InelasticES = 0
- 33. Perfectly Inelastic Supply - Elasticity equals 0QuantityPrice2. ...leaves the quantity supplied unchanged.
- 34. Inelastic Supply - Elasticity is less than 1QuantityPrice
- 35. Unit Elastic Supply - Elasticity equals 1QuantityPrice
- 36. Elastic Supply - Elasticity is greater than 1QuantityPrice
- 37. Perfectly Elastic Supply - Elasticity equals infinityQuantityPrice
- 38. Determinants of Elasticity of SupplyAbility of
- 39. Computing the Price Elasticity of SupplyThe price
- 40. Application of ElasticityCan good news for farming
- 41. Application of ElasticityExamine whether the supply or
- 42. An Increase in Supply in the Market
- 43. 3. ...and a proportionately smallerincrease in quantity
- 44. Compute Elasticity
- 45. Compute ElasticityDemand is inelastic
- 46. SummaryPrice elasticity of demand measures how much
- 47. SummaryThe price elasticity of supply measures how
- 48. Слайд 48
- 49. Computing the Price Elasticity of Demand
- 50. Perfectly Inelastic Demand - Elasticity equals 0
- 51. Inelastic Demand - Elasticity is less than 1
- 52. Unit Elastic Demand - Elasticity equals 1
- 53. Elastic Demand - Elasticity is greater than 1
- 54. Perfectly Elastic Demand - Elasticity equals infinity
- 55. Elasticity and Total Revenue
- 56. Elasticity and Total Revenue: Inelastic Demand
- 57. Elasticity and Total Revenue: Elastic Demand
- 58. Perfectly Inelastic Supply - Elasticity equals 0
- 59. Inelastic Supply - Elasticity is less than 1
- 60. Unit Elastic Supply - Elasticity equals 1
- 61. Elastic Supply - Elasticity is greater than 1
- 62. Perfectly Elastic Supply - Elasticity equals infinity
- 63. An Increase in Supply in the Market
- 64. An Increase in Supply in the Market
- 65. Скачать презентанцию
Elasticity . . . … is a measure of how much buyers and sellers respond to changes in market conditions … allows us to analyze supply and demand with
Слайды и текст этой презентации
Слайд 1Elasticity and Its Application
Chapter 5
Copyright © 2001 by Harcourt, Inc.
All
Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.
Слайд 2Elasticity . . .
… is a measure of how
much buyers and sellers respond to changes in market conditions
… allows us to analyze supply and demand with greater precision.
Слайд 3Price Elasticity of Demand
Price elasticity of demand is the percentage
change in quantity demanded given a percent change in the
price.It is a measure of how much the quantity demanded of a good responds to a change in the price of that good.
Слайд 4Determinants of
Price Elasticity of Demand
Necessities versus Luxuries
Availability of Close
Substitutes
Definition of the Market
Time Horizon
Слайд 5Determinants of
Price Elasticity of Demand
Demand tends to be more
elastic :
if the good is a luxury.
the longer the time
period.the larger the number of close substitutes.
the more narrowly defined the market.
Слайд 6Computing the Price Elasticity of Demand
The price elasticity of demand
is computed as the percentage change in the quantity demanded
divided by the percentage change in price.
Слайд 7Computing the Price Elasticity of Demand
Example: If the price of
an ice cream cone increases from $2.00 to $2.20 and
the amount you buy falls from 10 to 8 cones then your elasticity of demand would be calculated as:
Слайд 8Computing the Price Elasticity of Demand Using the Midpoint Formula
The
midpoint formula is preferable when calculating the price elasticity of
demand because it gives the same answer regardless of the direction of the change.
Слайд 9Computing the Price Elasticity of Demand
Example: If the price of
an ice cream cone increases from $2.00 to $2.20 and
the amount you buy falls from 10 to 8 cones the your elasticity of demand, using the midpoint formula, would be calculated as:
Слайд 10Ranges of Elasticity
Inelastic Demand
Quantity demanded does not respond strongly to
price changes.
Price elasticity of demand is less than one.
Elastic Demand
Quantity
demanded responds strongly to changes in price.Price elasticity of demand is greater than one.
Слайд 12Ranges of Elasticity
Perfectly Inelastic
Quantity demanded does not respond to price
changes.
Perfectly Elastic
Quantity demanded changes infinitely with any change in price.
Unit
ElasticQuantity demanded changes by the same percentage as the price.
Слайд 13A Variety of Demand Curves
Because the price elasticity of demand
measures how much quantity demanded responds to the price, it
is closely related to the slope of the demand curve.
Слайд 14Perfectly Inelastic Demand
- Elasticity equals 0
Quantity
Price
2. ...leaves the quantity demanded
unchanged.
Слайд 19Elasticity and Total Revenue
Total revenue is the amount paid by
buyers and received by sellers of a good.
Computed as the
price of the good times the quantity sold.
TR = P x Q
Слайд 21Elasticity and Total Revenue
With an inelastic demand curve, an increase
in price leads to a decrease in quantity that is
proportionately smaller. Thus, total revenue increases.
Слайд 22Elasticity and Total Revenue: Inelastic Demand
$3
Quantity
0
Price
80
Revenue = $240
Demand
$1
Demand
Quantity
0
Revenue =
$100
100
Price
An increase in price from $1 to $3...
…leads to
an increase in total revenue from$100 to $240
Слайд 23Elasticity and Total Revenue
With an elastic demand curve, an increase
in the price leads to a decrease in quantity demanded
that is proportionately larger. Thus, total revenue decreases.
Слайд 24Elasticity and Total Revenue: Elastic Demand
Demand
Quantity
0
Price
$4
50
Demand
Quantity
0
Price
Revenue = $100
$5
20
An increase
in price from $4 to $5...
…leads to a decrease in
total revenue from$200 to $100
Слайд 26Income Elasticity of Demand
Income elasticity of demand measures how much
the quantity demanded of a good responds to a change
in consumers’ income.It is computed as the percentage change in the quantity demanded divided by the percentage change in income.
Слайд 28Income Elasticity
- Types of Goods -
Normal Goods
Inferior Goods
Higher income raises
the quantity demanded for normal goods but lowers the quantity
demanded for inferior goods.
Слайд 29Income Elasticity
- Types of Goods -
Goods consumers regard as necessities
tend to be income inelastic Examples include food, fuel, clothing, utilities,
and medical services.Goods consumers regard as luxuries tend to be income elastic. Examples include sports cars, furs, and expensive foods.
Слайд 30Price Elasticity of Supply
Price elasticity of supply is the percentage
change in quantity supplied resulting from a percent change in
price.It is a measure of how much the quantity supplied of a good responds to a change in the price of that good.
Слайд 33Perfectly Inelastic Supply
- Elasticity equals 0
Quantity
Price
2. ...leaves the quantity supplied
unchanged.
Слайд 38Determinants of
Elasticity of Supply
Ability of sellers to change the
amount of the good they produce.
Beach-front land is inelastic.
Books, cars,
or manufactured goods are elastic.Time period.
Supply is more elastic in the long run.
Слайд 39Computing the Price Elasticity of Supply
The price elasticity of supply
is computed as the percentage change in the quantity supplied
divided by the percentage change in price.
Слайд 40Application of Elasticity
Can good news for farming be bad news
for farmers?
What happens to wheat farmers and the market for
wheat when university agronomists discover a new wheat hybrid that is more productive than existing varieties?
Слайд 41Application of Elasticity
Examine whether the supply or demand curve shifts.
Determine
the direction of the shift of the curve.
Use the supply-and-demand
diagram to see how the market equilibrium changes.
Слайд 42An Increase in Supply in the Market for Wheat
$3
Quantity of
Wheat
100
0
Price of
Wheat
Demand
S1
Harcourt, Inc. items and derived items copyright © 2001
by Harcourt, Inc.
Слайд 433. ...and a proportionately smaller
increase in quantity sold. As a
result,
revenue falls from $300 to $220.
An Increase in Supply in
the Market for Wheat$3
Quantity of Wheat
100
0
Price of
Wheat
1. When demand is inelastic,
an increase in supply...
Demand
S1
S2
2
110
2. ...leads
to a large
fall in
price...
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Слайд 46Summary
Price elasticity of demand measures how much the quantity demanded
responds to changes in the price.
If a demand curve
is elastic, total revenue falls when the price rises. If it is inelastic, total revenue rises as the price rises.
Слайд 47Summary
The price elasticity of supply measures how much the quantity
supplied responds to changes in the price.
In most markets,
supply is more elastic in the long run than in the short run. 
Слайд 63An Increase in Supply in the Market for Wheat
Harcourt, Inc.
items and derived items copyright © 2001 by Harcourt, Inc.
Слайд 64An Increase in Supply in the Market for Wheat
Harcourt, Inc.
items and derived items copyright © 2001 by Harcourt, Inc.
