Discussion:
DQ 1
What is the definition of price elasticity of demand? What is the relationship between price elasticity of demand and total revenue?
How does price elasticity of demand affect a firm's pricing decisions? How does the availability of substitutes affect the price elasticity of demand? Provide a real-world example that illustrates your points.
DQ 2
Identify a good or service with which you are familiar. What factors have contributed to changes in the supply of and demand for that good or service? What was the effect on the equilibrium price and quantity?
How do you expect changes in the microeconomy and macroeconomy to affect future supply of and demand for that good or service? Do you expect the equilibrium price to increase or decrease as a result?