Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#calculating-demand-elasticity-from-demand-function #cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Although the concept of different elasticities of demand is helpful in sorting out the qualitative and directional effects among variables, the analyst will also benefit from having an empirically estimated demand function from which to calculate the magnitudes as well.
If you want to change selection, open original toplevel document below and click on "Move attachment"

Parent (intermediate) annotation

Open it
Although the concept of different elasticities of demand is helpful in sorting out the qualitative and directional effects among variables, the analyst will also benefit from having an empirically estimated demand function from which to calculate the magnitudes as well. There is no substitute for actual observation and statistical (regression) analysis to yield insights into the quantitative behavior of a market. (Empirical analysis, however, is outsid

Original toplevel document

4.5. Calculating Demand Elasticities from Demand Functions
Although the concept of different elasticities of demand is helpful in sorting out the qualitative and directional effects among variables, the analyst will also benefit from having an empirically estimated demand function from which to calculate the magnitudes as well. There is no substitute for actual observation and statistical (regression) analysis to yield insights into the quantitative behavior of a market. (Empirical analysis, however, is outside the scope of this reading.) To see how an analyst would use such an equation, let us return to our hypothetical market demand function for gasoline in Equation 13 duplicated here: Equation (27)  Qdx=8,400−400Px+60I−10Py As we found when we calculated own-price elasticity of demand earlier, we need to identify “where to look” by choosing actual values for the independent variables, P x , I,


Summary

statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on

Details


Discussion

Do you want to join discussion? Click here to log in or create user.