E The Variety of Demand Curves 1. Classification of elasticity When the elasticity is greater than one,the demand is nsidered to be elastic b. to be inelastic. When the elasticity is equal to one,the demand is called unit elastic more elastic the demand Extreme Cases D Total Revenue and the Price Elasticity of Demand Other Demand Elasticities Definition of Income Elasticity of Demand:ameasure of how much the quantity demanded of a good responds to a change in consumer income,computed as the percentage change in quantity demanded divided by the percentage change in income. II.The Elasticity of Supply The Price Elasticity of Supply and Its Determinants 1 Definition of Price Elasticity of Supply:a measure of how much the quantity supplied of a good responds to a change in the price of tha good,computed as the percentage change in quantity supplied divided by the percentage change in price. Determinants of the Price Elasticity of Supply a Flexibility of Sellers:goods whi somewhat fixed in Time Horizon:supply is usually more inelastic in the short run than in the long run. B. Computing the Price Elasticity of Supply C The Variety of Supply Curves Slope o of Supply Curve:in general,the flatter the supply curve the more elastic the supply. 上xtreme Cases III.Three Applications of Supply,Demand,and Elasticity A Can Good News for Farming Be Bad News for Farmers? Why Did OPEC Fail to Keep the Price ofOil High? Does Drug Interdiction Increase or Decrease Drug-Related Crime? (三) 课后练习 1 suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston 1212 E. The Variety of Demand Curves 1. Classification of Elasticity a. When the elasticity is greater than one, the demand is considered to be elastic. b. When the elasticity is less than one, the demand is considered to be inelastic. c. When the elasticity is equal to one, the demand is called unit elastic. 2. Slope of Demand Curve: in general, the flatter the demand curve the more elastic the demand. 3. Extreme Cases D. Total Revenue and the Price Elasticity of Demand E. Other Demand Elasticities Definition of Income Elasticity of Demand: a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income. II. The Elasticity of Supply A. The Price Elasticity of Supply and Its Determinants 1. Definition of Price Elasticity of Supply: a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price. 2. Determinants of the Price Elasticity of Supply a. Flexibility of Sellers: goods which are somewhat fixed in supply (beachfront property) have inelastic supplies. b. Time Horizon: supply is usually more inelastic in the short run than in the long run. B. Computing the Price Elasticity of Supply C. The Variety of Supply Curves 1. Slope of Supply Curve: in general, the flatter the supply curve the more elastic the supply. 2. Extreme Cases III. Three Applications of Supply, Demand, and Elasticity A. Can Good News for Farming Be Bad News for Farmers? B. Why Did OPEC Fail to Keep the Price of Oil High? C. Does Drug Interdiction Increase or Decrease Drug-Related Crime? （三） 课后练习 1. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: