https://padlet.com/23h30112/uwzthhmqzf33f3ub en-us 2023-08-10 01:53:00 UTC 2023-08-10 12:48:05 UTC hello@padlet.com 23h30112 https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659117730 Def: The change in the quantity demanded as the good that has become relatively cheaper is  substituted for the good that has become relatively more expensive

Example:
Lets make a setting where you can only buy two goods.
One of the goods has a sale. The customer will obviously buy the one with the sale because e/she doesn't need to waste extra credits for the other good. (vice versa) 




]]> 2023-08-10 02:22:50 UTC https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659117730 23h30112 https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659401055 def: change in the quantity of that good demanded that results from a change in the overall purchasing power of the consumer’s income when the price of the good changes.

Example: 
Let's say you rented a house to live in, but that year the price of all housing had increased. Unfortunately, your income was the same. You will have to switch house to a cheaper place because you're income holds less power to rent a house than before. ]]> 2023-08-10 12:05:43 UTC https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659401055 23h30112 https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659407402 1. For majority of goods and services income effect doesn't take place, substitution does.

2. For a normal good the income effect usually reinforces the substitution effect

But:
For an inferior good the income and substitution effect change places. ]]> 2023-08-10 12:17:20 UTC https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659407402 23h30112 https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659413000 Def: the ratio of the percent change in the quantity demanded to the percent change in the price as we move along the demand curve

+ ignore minus sign, it is inconvienient

Further Explanation: 
Elasticity is used to measure measure the responsiveness of one variable to changes in another.


]]> 2023-08-10 12:28:47 UTC https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659413000 23h30112 https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659417895 Here, we see that when the price rises from $20 to $21, the quantity demanded falls from 10 million to 9.9 million vaccinations, resulting in a change of 0.1 million vaccinations demanded.

Change in quantity demanded = -0.1million vaccination / 10million vaccination x 100= -1% 

Change in price = 1$/20$ x 100= 5%

Price elasticity of demand = 1% / 5% = 0.2



]]> 2023-08-10 12:38:59 UTC https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659417895 23h30112 https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659422143 Midpoint Method: technique for calculating the percent change by dividing the change in a variable by the average, or midpoint, of the initial and final values of that variable.




]]> 2023-08-10 12:47:06 UTC https://padlet.com/23h30112/uwzthhmqzf33f3ub/wish/2659422143