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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
the law of demand that simply states the inverse relationship between the quantity demanded and the price
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4.1. Own-Price Elasticity of Demand
d the concept of a demand function with Equation 1 earlier, we were simply theorizing that quantity demanded of some good, such as gasoline, is dependent on several other variables, one of which is the price of gasoline itself. We referred to <span>the law of demand that simply states the inverse relationship between the quantity demanded and the price. Although that observation is useful, we might want to dig a little deeper and ask, Just how sensitive is quantity demanded to changes in the price of gasoline? Is it highly sensitive,


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