Webnote 120 Syllabus Focus I.b Syllabus 1.2: Microeconomics Syllabus 18-19 PeD • • • • • • Microeconomics: Webnote 120 120: Powerpoint summary 121: Dictionary 122: Ped – the big idea 123: Ped – Price power Sample Exam Question – see slide 2 in 120 244: Exam Questions Please do not print this webnote. Class notes are available on webnotes in section 1.2 of website I.b Syllabus 1.2: Microeconomics Syllabus 18-19 XeD • • • • • • 120: Powerpoint summary 121: Dictionary 122: Ped – the big idea 123: Ped – Price power Sample Exam Question – see slide 2 in 120 244: Exam Questions 1 Section 1.2 Elasticity + Markets The BIG ideas! I.b Syllabus 1.2: Microeconomics Syllabus 18-19 YeD • • • • • Microeconomics: Webnote 120 • 120: Powerpoint summary 121: Dictionary 122: Ped – the big idea 123: Ped – Price power Sample Exam Question – see slide 2 in 120 244: Exam Questions Webnote 120 Please do not print this webnote. Class notes are available on webnotes in section 1.2 of website I.b Syllabus 1.2: Microeconomics Syllabus 18-19 PeS • • • • • • 120: Powerpoint summary 121: Dictionary 122: Ped – the big idea 123: Ped – Price power Sample Exam Question – see slide 2 in 120 2 244: Exam Questions Webnote 120 Exam Focus Please do not print this webnote. Class notes are available on webnotes in section 1.2 of website May 2013 syllabus 1.2 SL 2(a) Explain the factors which might influence the cross price elasticity of demand between different products. tip: see web 204 2 (b) Examine the importance of income elasticity of demand for the producers of primary products, manufactured goods and services. M13/3/ECONO/SP1/ENG/TZ1/XX Microeconomics: Webnote 120 3 Webnote 241 P e D + Total Revenue (price x quantity) Syllabus reference 1.2 PeD and TR: what you need to remember 1. P e d Elastic: effect on TR (p x q) P TR P TR ‘pedro factor’ Note: total revenue moves in opposite direction to price Introduction:Webnote 104 4 Webnote 120 Please do not print this webnote. Class notes are available on webnotes in section 1.2 of website PeD and TR: what you need to remember Ped inelastic P P effect on TR (pxq) TR then ‘island factor’ TR Note: total revenue moves in same direction as price Introduction:Webnote 104 5 Section 1.2 Markets The BIG ideas! Webnote 722 Please do not print this webnote. Class notes are available on webnotes in section 1 of website Yed – see webnote 126 The BIG ideas! 1. INFERIOR (yed, negative) 1. YED elasticity is a key issue for LDC’s Commodities / primary goods income inelastic. Necessities sucy as food products. This is critical for LDC’s Increases in incomes not a great benefit for LDC’s selling food. 3. BUT manufactured+luxury goods tend to be income elastic (yed 4). DC’s benefit by selling luxury goods and services. More profits! Microeconomics: Webnote 120 6 Webnote 722 Section 1.2 Markets The BIG ideas! Please do not print this webnote. Class notes are available on webnotes in section 1 of website PeS – see webnote 126 The BIG ideas! PeS 1. Shows ability of firms to adjust to changes in price. Firms that have elastic price elasticity of supply can benefit from sudden changes in price. More profit can be made by firms that can react to market changes Microeconomics: Webnote 120 7 Webnote 722 Section 1.2 Markets The BIG ideas! Please do not print this webnote. Class notes are available on webnotes in section 1 of website Xed – see webnote 126 The BIG ideas! xeD • SUBSTITUTES ( X e D positive) e.g. + 5.8 = close substitute • COMPLEMENTARY (X e D, negative) e.g. Microeconomics: Webnote 120 - 5.8 = close complement 8