EQUATION 3.1 – 3.2 Price elasticity of demand(eP)

EQUATION 3.1 – 3.2 Price elasticity of demand(eP)

FIGURE 3.1 Price Elasticity and the Movement Along a Demand Curve

TABLE 3.1 Values of Price Elasticity of Demand Coefficients

FIGURE 3.2 Elastic Demand and Total Revenue

FIGURE 3.3 Inelastic Demand and Total Revenue

EQUATION 3.3 Arc Price Elasticity of Demand

EQUATION 3.4 Point Price Elasticity of Demand

EQUATION 3.5 Linear Demand Function

TABLE 3.2 Numerical Example of Demand, Total Revenue, Average Revenue, and Marginal Revenue Functions

TABLE 3.3 Numerical Values for the Functional Relationships in Table 3.2

TABLE 3.4 Arc Price Elasticity Versus Point Price Elasticity Calculations (Data from Tables 3.2 and 3.3)

FIGURE 3.4 Demand and Marginal Revenue Functions

FIGURE 3.5 The Total Revenue Function

TABLE 3.5 Relationships for a Linear Downward Sloping Demand Curve

FIGURE 3.6 Vertical Demand Curve

FIGURE 3.7 Horizontal Demand Curve

TABLE 3.6 Income Elasticity and Cross-Price Elasticity of Demand Coefficients

TABLE 3.7 Estimates of Demand Elasticities

TABLE 3.8 Elasticity Coefficients from Marketing Literature

FIGURE 3.A1 Derivation of a Consumer Indifference Curve

FIGURE 3.A2 Illustration of Consumer Indifference Curves

FIGURE 3.A3 A Convex Indifference Curve

EQUATION 3.A1 The Budget Constraint

FIGURE 3.A4 The Budget Line

FIGURE 3.A5 Change (Increase) in Income (Prices Constant)

FIGURE 3.A6 Change (Decrease) in the Price of Good X (All Else Constant)

FIGURE 3.A7 The Consumer Maximization Problem

FIGURE 3.A8 Consumer Equilibrium with a Change in Income (Two Normal Goods)

FIGURE 3.A9 Consumer Equilibrium with a Change in Income (One Normal and One Inferior Good)

FIGURE 3.A10 Consumer Equilibrium with a Decrease in the Price of Good X (Inelastic Demand for X)

FIGURE 3.A11 Consumer Equilibrium with a Decrease in the Price of Good X (Elastic Demand for X)

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