Microeconomics,, 16th Canadian Edition

Figure 4-7 Short-Run and Long-Run Equilibrium Following an Increase in Demand example relates to oil production. New oil fields ...

Table4-5 Summary of Price Elasticity of Supply The size of the changes in the equilibrium price and quantity following a shift i ...

...

1 Here is another special case that is often puzzling at first glance. Consider a linear supply curve that begins at the origin. ...

4.3 Elasticity Matters for Excise Taxes We have spent much time examining price elasticity (of both demand and supply) and how t ...

Figure 4-8 The Effect of a Gasoline Excise Tax The burden of an excise tax is distributed between consumers and sellers in a man ...

the seller price, also by less than the full amount of the tax. The tax also reduces the equilibrium quantity exchanged. In term ...

Figure 4-9 Elasticity and the Incidence of an Excise Tax The role of the relative elasticities of supply and demand in determini ...

supply curve to shift up by the amount of the tax to The new equilibrium is at The consumer price rises to the seller price fall ...

4.4 Other Demand Elasticities A product’s price is not the only important variable determining the quantity demanded for that pr ...

quantity demanded is greater or less than the percentage change in income that brought it about. Income Inelastic If income elas ...

Empirical studies find that basic food items—such as vegetables, bread, and cereals—usually have positive income elasticities le ...

income elasticity because an increase in income actually leads to a reduction in quantity demanded. An example of an inferior go ...

rise in income was shared to some extent by almost all citizens. As they found their incomes increasing, they increased their de ...

while employment in manufacturing rose. In the last half of the century, employment in manufacturing fell gradually whereas empl ...

Cross Elasticity of Demand The responsiveness of quantity demanded to changes in the price of another product is called the cros ...

Table4-6 Summary of Income Elasticity of Demand The positive or negative signs of cross elasticities tell us whether products ar ...

...

...

Summary ...