economics topic 5
TRANSCRIPT
Economics Topic 5.1 Exercise
1. The responsiveness of demand for one good to a change in a price of another.
XED =
2. XED =
= 0.9 *they are substitute goods
3. XED =
= - 1 *they are complementary good
4. YED =
5. YED =
= 1.1 *they are Normal goods
6. YED =
= -1.1
7. The responsiveness of QS to change in price
PES =
8. Price Elastic Supply
Product whose supply changes greatly when the is slight price change
Price Inelastic supply
Product whose supply changes slightly when there is great price change
9. PES =
= 1.5 * Elastic
* Little change in price, big change in QS
10. - Short run refers to a time period that is too short for a firm to change their factory
capacity or for new firms to enter the market.
- Product price increase, firm can’t increase supply significantly to take advantage of
higher price
- Supple inelastic