me buy master book...
haha...anyway, even if i have the books, i dont think i can
understand anything inside...LOL
TS, though the textbook by Sloman is used in many economics
courses. There are better economics textbooks eg Microeconomics by
Salvatore.
TS, if you need resources that are simple and easy to
understand. You can refer to YJC, JJC or TPJC economics notes and
model essays which are easy to read and understand.
What is the price elasticity of demand ?
Price elasticity of demand measures how much people are willing
and able to buy more or less when the price of the good
changes.
For example, the price elasticity of demand is - 5.
(The negative sign is to show the inverse relationship between
price and quantity demanded ie when price increases, people buy
less and when price decreases, people buy more).
(When people talk about the price elasticity of demand whether
it is price elastic >1 or inelastic < 1, they only look at
the absolute value ie ignore the negative sign).
So, if the price elasticity of demand is - 5.
This means that when the price of the good decreases by 1%,
people are willing
and able to buy 5% more of the good. This is known as price
elastic demand ie a
small change in price will lead to a large change in quantity
demanded.
