39 The Price Elasticity of Demand and Its Measurement LEARNING OBJECTIVE4The Price Elasticity of Demand and Its MeasurementPrice elasticity of demand The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product’s price.Measuring the Price Elasticity of Demand經濟學 Chapter 3 供需彈性與圴衡分析
40 a. The effect of a price change on the quantity demanded. If you know the value for price elasticity of demand, then which of the following can you compute?a. The effect of a price change on the quantity demanded.b. The responsiveness of the quantity supplied of a good to changes in its price.c. The price elasticity of supply.d. All of the above.經濟學 Chapter 3 供需彈性與圴衡分析
41 a. A decrease in quantity demanded to zero. If demand is perfectly elastic, then what is the impact of an increase in price?a. A decrease in quantity demanded to zero.b. No change in quantity demanded.c. A change in quantity demanded exactly equal to the change in price.d. A very small change in quantity demanded.經濟學 Chapter 3 供需彈性與圴衡分析
42 What Determines the Price Elasticity of Demand for a Product? LEARNING OBJECTIVE5What Determines the Price Elasticity of Demand for a Product?The key determinants of price elasticity of demand are as follows:Availability of close substitutesPassage of timeNecessities versus luxuriesDefinition of the marketShare of good in the consumer’s budget經濟學 Chapter 3 供需彈性與圴衡分析
43 PRICE ELASTICITY OF DEMAND 6 - 4The Price Elasticity of Demand for Breakfast CerealCEREALPRICE ELASTICITY OF DEMANDPost Raisin Bran-2.5All family breakfast cereals-1.8All types of breakfast cereals-0.9What happens when the price of cereal rises?經濟學 Chapter 3 供需彈性與圴衡分析
44 The Relationship Between Price Elasticity and Total Revenue 6 - 3Elasticity is Not Constant Along a Linear Demand Curve經濟學 Chapter 3 供需彈性與圴衡分析
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