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]]> By: shawn http://cafehayek.com/2007/07/unwholesome-ant.html/comment-page-1#comment-14307 shawn Wed, 11 Jul 2007 18:22:28 +0000 http://localhost/wordpress/?p=3721#comment-14307 <p>...thanks a lot for the input and helping me understand this (a little) better. :)</p> …thanks a lot for the input and helping me understand this (a little) better. :)

]]> By: Methinks http://cafehayek.com/2007/07/unwholesome-ant.html/comment-page-1#comment-14308 Methinks Tue, 10 Jul 2007 11:31:54 +0000 http://localhost/wordpress/?p=3721#comment-14308 <p>Price elasticity of demand is the change is in the the quantity demanded given a change in price for a given product. So, % change in quantity demanded divided by % change in price for a given product.</p> <p>The way I remember it, if the elasticity of demand (ED) is <1, demand is considered relatively inelastic. Obviously, the closer ED is to 0, the less elastic the demand. If the ED is greater than 1, then then demand is considered to be elastic and perfect elasticity does result in zero demand given any change in price, as Patrick said.</p> Price elasticity of demand is the change is in the the quantity demanded given a change in price for a given product. So, % change in quantity demanded divided by % change in price for a given product.

The way I remember it, if the elasticity of demand (ED) is <1, demand is considered relatively inelastic. Obviously, the closer ED is to 0, the less elastic the demand. If the ED is greater than 1, then then demand is considered to be elastic and perfect elasticity does result in zero demand given any change in price, as Patrick said.

]]> By: Methinks http://cafehayek.com/2007/07/unwholesome-ant.html/comment-page-1#comment-14309 Methinks Tue, 10 Jul 2007 11:11:10 +0000 http://localhost/wordpress/?p=3721#comment-14309 <p>I was hoping Don or Russell would write a response to this twisted thinking.</p> <p>Leave it to a former regulator to assume that he is the only one able to see "nuances" in a market and that those "nuances" require his intervention. What a crock.</p> I was hoping Don or Russell would write a response to this twisted thinking.

Leave it to a former regulator to assume that he is the only one able to see "nuances" in a market and that those "nuances" require his intervention. What a crock.

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