Introduction to Microeconomics Chapter 03: Supply, Demand and Elasticity
Chapter 3 deals with elasticity as a measure of how much buyers and sellers respond to changes in market conditions, which is necessary for assessing how total revenue will be affected by these changes. The central element of chapter 3 is the price elasticity of demand, its determinants, ranges and how to calculate it as well as the impact of price changes on total revenue. Income elasticity of demand, cross-price elasticity of demand and price elasticity of supply are also explained.
Prof. Dr. Hiltgunt Fanning (Fachhochschule Stralsund)