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
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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
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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