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Notes for Engineering Economics with covering Elasticity topic and much more
Typology: Schemes and Mind Maps
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Price Elasticity of Demand is a measure of how much quantity demanded of goods responds to the change in the price of that goods. It’s the percentage change of quantity demanded divided by the percentage change of price. Price Elasticity of Demand = % change ∈ quantity demanded × 100 % change ∈ price × 100
It is a measure of how much quantity demanded of one good responds to the change in the price of another good. It’s a percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. Cross Price Elasticity = % change ∈ quantity demanded of one good × 100 % change ∈ price of another good × 100
When there is a decrease in the price of a product, the demand for the product increases and its supply decreases. The point of intersection of the supply curve and the demand curve is known as the equilibrium point. At the price corresponding to this point, the quantity of supply is equal to the quantity of demand. Hence, this point is called the equilibrium point. Factors influencing demand
