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Table 4.1
Factors That Shift the Demand
Curve
Table 4.2
Factors That Shift the Supply
Curve
The Elasticity of Demand
• Elasticity
– Measure of the responsiveness of quantity demanded or
quantity supplied
• Percentage change in quantity demanded (∆Qd/Qd)
• Percentage change in quantity supplied (∆Qs/Qs)
– To a change in one of its determinants
• Demand-side
– (own) price <-> demand elasticity (∆Qx/Qx)/ (∆Px/Px )
– Price of substitute/complement <-> cross-price
(∆Qx/Qx)/(∆Py/Py )
– Income <-> income elasticity ((∆Qx/Qx)/ (∆I/I )
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