$4 4.000 8 3,000 12 2.000 16 1,000 20 Now add the old demand schedule and the demand schedule for the new students to calculate the new demand schedule for the entire college.What will be the new equilibrium price and quantity? (四) 教学方法与手段 课堂讲授。 第五章Elasticity and Its Application (一) 目的与要求 By the end of this chapter,students should understand 1.the meaning of the elasticity of demand 2 what deten nines the elasticity of demand of supply 4 5.how to apply the concept ofelasticity in the three very different markets (一 教学内容 I.The Elasticity of Demand A. Definition of Elasticity:a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. B The Price Elasticity of Demand and Its Determinants Definition of Price Elasticity of Demand:a measure ofhow much the quantity demanded of a good responds toa change in the price of that good,computed as the percentage change in quantity demanded divided by the percentage change in price. Determinants of Price Elasticity of Demand Necessities versus Luxuries:necessities are more price inelastic Availability of Close Substitutes:the more substitutes a good has,the more elastic its demand. C. Definition of the Market:narrowly defined markets(ice cream)have more elastic demand than broadly defined markets(food). d Time Horizon:goods tend to have more elastic demand over longer time horizons. C Computing the Price Elasticity of Demand D The Midpoint Method:A Better Way to Calculate Elasticities 11 11 $ 4 4,000 8 3,000 12 2,000 16 1,000 20 0 Now add the old demand schedule and the demand schedule for the new students to calculate the new demand schedule for the entire college. What will be the new equilibrium price and quantity? （四） 教学方法与手段 课堂讲授。 第五章 Elasticity and Its Application （一） 目的与要求 By the end of this chapter, students should understand: 1. the meaning of the elasticity of demand 2. what determines the elasticity of demand 3. the meaning of the elasticity of supply 4. what determines the elasticity of supply 5. how to apply the concept of elasticity in the three very different markets （二） 教学内容 I. The Elasticity of Demand A. Definition of Elasticity: a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. B. The Price Elasticity of Demand and Its Determinants 1. Definition of Price Elasticity of Demand: a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price. 2. Determinants of Price Elasticity of Demand a. Necessities versus Luxuries: necessities are more price inelastic. b. Availability of Close Substitutes: the more substitutes a good has, the more elastic its demand. c. Definition of the Market: narrowly defined markets (ice cream) have more elastic demand than broadly defined markets (food). d. Time Horizon: goods tend to have more elastic demand over longer time horizons. C. Computing the Price Elasticity of Demand D. The Midpoint Method: A Better Way to Calculate Elasticities