Re: Turbo questions

I.P. Nichols wrote:

I've not seen elasticity distinguished as two different terms in a
manner that leads to opposite conclusions. When I studied the theory
of price, the term elasticity referred to the "price elasticity of
demand" which is measured as the percentage change in quantity
demanded that occurs in response to a percentage change in price. In
my mind I always picture it as the slope (dQ/dP) of the demand curve
measured at the point in question.

I don't have a reference handy, but I've seen written that elasticity of
price means, essentially, inelasticity of demand, IOW, within a more than
typical range, the price can vary without significantly effecting demand -
in both directions, lower price won't increase demand, higher won't decrease
it. There's still limits though (at the high end), typically at a point
where some substitute becomes feasible.

--
Wayne Niddery - Winwright, Inc (www.winwright.ca)
"Nurture your mind with great thoughts. To believe in the heroic makes
heroes." ? Benjamin Disraeli


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