Chapter 2 Demand and Supply Analysis
Elasticity Versus Slope n Slope: is the ratio of absolute changes in quantity and price. (= DQ/DP). §Measures the absolute change in quantity demanded (in units of quantity) due to a one-unit change in price. §Qd=a-bP § a is the intercept, -b is the slope n Elasticity:is the ratio of relative (or percentage) changes in quantity and price.
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