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.