Microeconomics

.Calculating Equilibrium Price and Quantity 

    Qd =Qs

Price Elasticity of Demand 

%changing Q / %changing P = e

*İnverse of the slope of demand curve

Point Elasticity 

(dQ/ dP) . (P/ Q)

 Determinants of Price Elasticity of Demand 

• share of expenditure on the good in the budget
• substitutes
• change in preferences
• broadness of good categories