New answers tagged behavioral-economics
1
Elasticity of demand is normally considered in relation to market demand for a good, that is, the sum of individual customer demands. Different customers will probably respond in different ways to a price increase. If the increase is 5%, especially on a low value item, very likely many customers will not notice, some will notice but not change their buying ...
2
The standard elasticity still makes sense. Elasticity is not necessarily constant. Also, I am not sure what sort of formula you learned at your college but elasticity is rigorously defined (and also taught at college level for econ majors) as $EL = \frac{df(x)}{dx}\frac{x}{f(x)}$ for some function $f(x)$ (see Essential Mathematics for Economic Analysis by ...
Top 50 recent answers are included
Related Tags
behavioral-economics × 100microeconomics × 20
game-theory × 18
reference-request × 17
utility × 9
bounded-rationality × 8
experimental-economics × 7
decision-theory × 6
risk-aversion × 6
macroeconomics × 5
econometrics × 4
consumer-theory × 4
finance × 3
preferences × 3
uncertainty × 3
mathematical-economics × 2
labor-economics × 2
data-request × 2
expected-utility × 2
risk × 2
history-economic-thought × 2
pricing × 2
soft-question × 2
efficient-markets × 2
marketing × 2