Questions tagged [elasticity]

Elasticity is the measurement of how responsive an economic variable is to a change in another.

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Infinite labor elasticity with frisch elasticity

It is from Hansen(1985)'s paper. Suppose that household has utility function $u(c)+v(1-h)$ and they can choose probability to work($h$) as $\alpha$. There is an insurance $b_t$ giving $1$ unit of ...
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Finding the elasticity of a function with respect to a variable from logarithm

I tried to ask this question on Math Stackexchange, but got no answer. I'll try here. I am a bit confused as to how to see elasticity of a function with respect to a variable from logarithm. Lets say ...
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How is Elasticity at point different from Elastic Demand Curve?

Let's say I have an Elastic Demand Curve as shown below Now, as this is Elastic Demand Curve (...
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Slope of linear demand curve and price elasticity regions along the curve

My textbook mentions that the slope of a linear demand curve gives crucial information regarding price elasticity of demand; namely, that demand is inelastic for steeper curves and elastic for flatter ...
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Elasticity of the factor share

My question concerns exercise 2.4 from Hal Varian's Microeconomic Analysis. Please note that I am not requesting a solution to the exercise, and only asking how to understand what I am being asked to ...