Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
bartleby

Videos

Textbook Question
Book Icon
Chapter 6, Problem 6.1.1RQ

Write the formula for the price elasticity of demand. Why isn’t elasticity just measured by the slope of the demand curve?

Expert Solution & Answer
Check Mark
To determine
Formula for price elasticity of demand.

Explanation of Solution

Price-elasticity of demand is the responsiveness of the quantity demanded to the change in price. The formula for price elasticity of demand is percentage changes in quantity demanded divided by percentage changes in price. It can be symbolically expressed as follows:

Priceelasticityofdemand=PercentagechangeinquantitydemandedPercentagechangeinprice

The price elasticity of demand is measured by using the slope of the demand curve.  Because, the slope states that how much the quantity changes according to the change in price.

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: Price elasticity of demand refers to the responsiveness of changes or the change in quantity demanded due to the change in price.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Use a game tree to illustrate why an aircraft manufacturer may price below the current marginal cost in the short run if it has a steep learning curve.   ​(Hint​: Show that learning by doing lowers its cost in the second​ period.) Part 2 Assume for simplicity the game tree is illustrated in the figure to the right. Pricing below marginal cost reduces profits but gives the incumbent a cost advantage over potential rivals. What is the subgame perfect Nash​ equilibrium?
Answer
M” method  Given the following model, solve by the method of “M”. (see image)

Chapter 6 Solutions

Economics (7th Edition) (What's New in Economics)

Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Text book image
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning
Text book image
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
How To Understand Elasticity (Economics); Author: Market Power;https://www.youtube.com/watch?v=1XXhpHJTglg;License: Standard Youtube License