Course Objectives for Chapter 6: Elasticity: The Responsiveness of Demand and Supply
Students should be able to:
· Define the price elasticity of demand and understand how to calculate it.
· Explain the determinants of the price elasticity of demand.
· Describe the relationship between the price elasticity of demand and total revenue.
· Define the cross-price elasticity of demand and the income elasticity of demand, and explain their main determinants and how they are calculated.
· Use price elasticity and income elasticity to analyze economic issues.
· Define the price elasticity of supply, and describe its main determinants and how it is calculated.