ELASTICITY

Elasticity On the week 7(Wednesday , 10 February 10, 2016), we’d learn Elasticity topic. This is what we got from that session. ·       A measure of the responsiveness of a variable (quantity demandd or supplied) to a change in one its determinants ·       There are four types -         price elasticity of demand -         income elasticity...

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PRICING THEORY PART II

SUPPLY DEFINITION OF SUPPLY Supply is refer to ability and willingness to sell specific quantities of goods in a given period of time at a particular price. Willingness + ability to sell LAW OF SUPPLY Positive relationship between product and quantity supplied. When the price of the product increase, quantity supplied of that product will be increase. When the price of the product decrease, the quantity supplied of that...

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