AP Micro 5 by Savannah Julius https://padlet.com/8juliuss/apmicro5 Elasticity en-us 2017-10-17 13:49:32 UTC 2025-05-11 19:53:29 UTC hello@padlet.com http://toonclips.com/600/cartoon-slingshot-boy-by-toonaday-10641.jpg Quizlet 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197787164 https://quizlet.com/_3vob5d]]> 2017-10-17 13:53:27 UTC https://padlet.com/8juliuss/apmicro5/wish/197787164 Price Elasticity of Demand 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197801689 % change in QD / % change in price]]> 2017-10-17 14:13:41 UTC https://padlet.com/8juliuss/apmicro5/wish/197801689 elastic 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197801942 QD responds significantly to change in price]]> 2017-10-17 14:13:59 UTC https://padlet.com/8juliuss/apmicro5/wish/197801942 inelastic 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197802196 QD responds only a small amount to change in price]]> 2017-10-17 14:14:20 UTC https://padlet.com/8juliuss/apmicro5/wish/197802196 Determinants of Price Elasticity of Demand 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197802412
  • Availability of Close Substitutes
    • more substitutes = elastic
    • less substitutes = inelastic
  • Necessities v. Luxuries
    • necessities = inelastic
    • luxuries = elastic
  • Definition of the Market
    • broad = inelastic
      • food
    • narrow = elastic
      • vanilla ice cream
  • Time Horizon
    • short run = inelastic
    • long run = elastic
    • ]]>     2017-10-17 14:14:37 UTC https://padlet.com/8juliuss/apmicro5/wish/197802412     Midpoint Method 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197804672  - avoid inverses
     - same value no matter which direction you calculate from
     - find midpoint between points A and B --> AVERAGING

    ]]>     2017-10-17 14:17:42 UTC https://padlet.com/8juliuss/apmicro5/wish/197804672     Variety of Demand Curves 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197806060 https://docs.google.com/document/d/1fhZ5JEh4Q4EXiqHgb9DN9QFUYEdYXvcP-CG8lj3rOOk/edit ]]> 2017-10-17 14:19:32 UTC https://padlet.com/8juliuss/apmicro5/wish/197806060 Determining if elastic or not 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197813465 elasticity > 1 = elastic
    elasticity <1 = inelastic
    elasticity = 1 = unit elastic
    elasticity = infinity = perfectly elastic
    elasticity = 0 = perfectly inelastic]]>     2017-10-17 14:29:27 UTC https://padlet.com/8juliuss/apmicro5/wish/197813465     Total Revenue and Price Elasticity of Demand 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197814234 if demand is INELASTIC... an INCREASE in price would result in an INCREASE in total revenue

    if demand is ELASTIC... an INCREASE in price would result in a DECREASE in total revenue]]>     2017-10-17 14:30:37 UTC https://padlet.com/8juliuss/apmicro5/wish/197814234     Total Revenue 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197814277 total revenue = Price x Quantity

    TR = P x Q]]>     2017-10-17 14:30:41 UTC https://padlet.com/8juliuss/apmicro5/wish/197814277     How price and total revenue relate 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197815712 inelastic demand: P and TR move in same direction

    elastic demand: P and TR move in opposite directions

    unit elastic: TR remains constant when P changes]]>     2017-10-17 14:32:54 UTC https://padlet.com/8juliuss/apmicro5/wish/197815712     Elasticity is related to slope of demand curve 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197816691 at some places on the curve, the demand may be inelastic, and at others, it may be elastic]]> 2017-10-17 14:34:32 UTC https://padlet.com/8juliuss/apmicro5/wish/197816691 Income Elasticity of Demand 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197817050 % change in QD / % change in income
    • normal goods: POSITIVE (+) income elasticity
    • inferior goods: NEGATIVE (-) income elasticity

    • necessities: small income elasticity
    • luxuries: large income elasticity

    ]]>     2017-10-17 14:35:06 UTC https://padlet.com/8juliuss/apmicro5/wish/197817050     Cross-Price Elasticity of Demand 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197818476 % change QD for good 1 / % change in price of good 2

    substitutes: POSITIVE (+) cross price elasticity
    complements: NEGATIVE (-) cross price elasticity]]>     2017-10-17 14:37:20 UTC https://padlet.com/8juliuss/apmicro5/wish/197818476     Price Elasticity of Supply 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197875964 % change in QS / % change in price]]> 2017-10-17 16:04:50 UTC https://padlet.com/8juliuss/apmicro5/wish/197875964 elastic 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197876134 QS responds significantly to change in price]]> 2017-10-17 16:05:05 UTC https://padlet.com/8juliuss/apmicro5/wish/197876134 inelastic 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197876414 QS responds only a small amount to change in price]]> 2017-10-17 16:05:19 UTC https://padlet.com/8juliuss/apmicro5/wish/197876414 Variety of Supply Curves 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197876897 https://docs.google.com/document/d/1fhZ5JEh4Q4EXiqHgb9DN9QFUYEdYXvcP-CG8lj3rOOk/edit]]> 2017-10-17 16:06:07 UTC https://padlet.com/8juliuss/apmicro5/wish/197876897 Determining if elastic or not 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197877159 elasticity > 1 = elastic
    elasticity <1 = inelastic
    elasticity = 1 = unit elastic
    elasticity = infinity = perfectly elastic
    elasticity = 0 = perfectly inelastic]]>     2017-10-17 16:06:33 UTC https://padlet.com/8juliuss/apmicro5/wish/197877159     technological advancement 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197877828 tech advancement affects supply curve
     - shift right

    if demand curve is inelastic...
    ...an decrease in price causes total revenue to also decrease]]>     2017-10-17 16:07:44 UTC https://padlet.com/8juliuss/apmicro5/wish/197877828     raising prices 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197877888 owners of oil jointly lowered their supply which raised prices

    • short run = oil was inelastic and owners stay rich
      • large price increase
    • long run = oil was elastic and owners couldn't keep the price of oil high
      • small increase in price

    *Take time horizon into consideration!!!
    ]]>     2017-10-17 16:07:50 UTC https://padlet.com/8juliuss/apmicro5/wish/197877888     increase in effort against drugs 8juliuss https://padlet.com/8juliuss/apmicro5/wish/197878051 increase in agents for war on drugs --> affects supply curve
     - shift left
    • short run = inelastic

    increase in drug education --> affects demand curve
     - shift left
    • long run = elastic

    ]]>     2017-10-17 16:08:05 UTC https://padlet.com/8juliuss/apmicro5/wish/197878051     Price Elasticity of Supply in the SHORT RUN 8juliuss https://padlet.com/8juliuss/apmicro5/wish/198058145 graph]]> 2017-10-18 00:14:59 UTC https://padlet.com/8juliuss/apmicro5/wish/198058145 Price Elasticity of Supply in the LONG RUN 8juliuss https://padlet.com/8juliuss/apmicro5/wish/198058185 graph]]> 2017-10-18 00:15:21 UTC https://padlet.com/8juliuss/apmicro5/wish/198058185 Types of Goods 8juliuss https://padlet.com/8juliuss/apmicro5/wish/198058535 normal good if income elasticity > 0

    inferior good if income elasticity < 0]]>     2017-10-18 00:18:23 UTC https://padlet.com/8juliuss/apmicro5/wish/198058535     Total Revenue 8juliuss https://padlet.com/8juliuss/apmicro5/wish/198061538 2017-10-18 00:41:43 UTC https://padlet.com/8juliuss/apmicro5/wish/198061538 Determinants of Price Elasticity of Supply 8juliuss https://padlet.com/8juliuss/apmicro5/wish/199587131 1. Availability of Inputs
    • many inputs: large price elasticity of supply
      • innovation tends to mean more elastic
    • few inputs: small price elasticity of supply
      • scarcity tends to mean more inelastic
    2. Time Period
    • short run = inelastic
    • long run = elastic
    ]]>     2017-10-23 14:16:40 UTC https://padlet.com/8juliuss/apmicro5/wish/199587131