WY FW fg ewand 2 a Dee eee to Pwiehage backed b; aed oe POT. wie Seewsstng ne Concept oY demand » Sourg red by AS Showa ve Lepr fh mMa. . franca) dune Sou Pasty Aewand for a Coumoa ry ay Fairs mee “Pd Ox wortter Quand. 2 dewand Auowys weang aewand patuntt Of Af The thus ay be Oday, Q eek 5 @ Worth Ost Qyeor Ae. > demand Always relates to a Coumoday “Hence sy WE Shoura g, PRT the Coumodiry , Foutths tne MWOUUTS Private Second Thitd “ESS top Onty Tn Ake ° Wh dewond dunetion go | LOhEN the elation Derwoeen Prfee and Hamiiy dewanded | %& O *E he a Oly STS Te 1 eek xp & 4or7 demand SIS SSENINeSg o Nw Oy Y ~ SON Wabin a ; Be Necessity of dewond gaaysts . | Ok, The {iu Pro ys Congy , Couwuo dy fm Onder Ao Serr F ta the} °° ° “Hon ¢ AS, F the commodfiy can De Sold Fr the Qe “0 Ounodity. The ftw Used 5 duces any Voluus of deurand 1 wrt Fins o Product Dn Akcordfng1 » 205 __ %© the: fu. 40 Wao htop aoa ty Whe Amounr Fy TS %0 be ~ went and 5 t a Oralyste Of Business Econowkeg 5 © POMC to 44! Prnctieat Aspreoig O dowand Seco No Hs theorttiteat Wpeots . 1 Austnes Eeonowtes ode Hoe, “ad Aratsts ¥% Wotnt POMC ustLp, hou thts, dewanch Mn Bu if be knowy To advance And hous Can Ke Fr fuenced . ~ #0. Q Heres deuand AWNarsate hag, two useul pwt- FU HT “Poses to apy. AMA gee nt dewas i Fret 5 the {Pu Produces Coumodfites roti, 29 eye 20 wn = Meta Ut 30.5 before stam wre due son ASE dtsus vue Should have an fdea about the Probadie dewand for ftuct CoUMadity fe. the QuLount that tan De Bo1d Frithe Prod UEL - The Tue thovde oe tS {ute deuana Pind Con be ly O10 OLE a yp Of Aewand anarygre . | Congu: Second , dewtandd adlysis Also Constders how the voluws Avo Sf dowtand can be *ofluenced Or wantpurared To Dhen ingtuence dewand 190 Should tate UNOW Lhe deror. Aewo ~wtnans dewand 5 Fox demand an he YH Jtuenced Quo: Only thro Te Aetowtnanrs . Fort exaug Leno aad th “PLES we fox fort & PoUwWo ay depends) pre NNR 5 TNeOWS of the Consus, 5 advan ‘ welt eOsts Bee Now 5 40 Faenease de Show! APiat, Lino 44 WAND o the firs dwiy NO &he Norurte Of Ahes Hopendence and 0 to SPPAPrifaie WeOsWIeS : The faut can knows Qston QU theae WAWIS -[nory dewtand Analy sis, However » the SW Can chagre nly ‘those vantiastes Duohich apie woHhin \ da Conroy.1 encore © ae Pepaed fon Consus goods Ys; Dewan’ jon \ Produeere? cody ° : When an ¥3 used & Consuw wR hate SSnstuag G08 - The Constuuuts old fm the Hon 9, pion 5 FS calted { Suck 84S. Thar % ih =e, On {- The thu ge wanty frow the Consus I Consuutore) goods Ae dewand | used se the Otho hands wroar’ ens? Foods axe Gods which Ofe | + wy 'N the Production process, . ¥- S04 Fast, The du: 8 Wheh P'S Of Dodueerg, foods ante Priofessfonay wy BE vo Conscious, Ahour the qualtry o 4 HOt So cast hy TNwusfoned bt adventige- 7 and herve x mes °F consu onowteg 5 pods One nor°aq Co Ascious; are Pasty Ff tuenceat vy Adverrtsewent. | dewand Second, Conguuuig Goods Oe purchased fon conguuprfon. "S sdewa- Honey the wat 6 Revive Ts 40 get watttay On SeAFe Jaco. 10nd Can Sud 2 PIOducens gees Me pwrehased Tn “Order X0 Obtaty, PIo-| : “BS Hoe prop i Wain obfecrive: ‘ut pwt- Pod 5D ewand FOr COnsuwmoig dautand whe © dewand for Preduore 3 Te de He 40 tHe dewand ~The HAS Foods gy QoFred Wand for Producers soos, Ooites, PlOuLthe he fu dewand 207 Prody, © be ‘produces » ausand fox {Wuetuatfon fn de ad 40 ahew. Th the ai Mm the Produeid Sold Fathe Ptoducerg, Goods, XC are >the dewand for AWARE - Hence >the cbouand or} rn Produeong Goods fg Wore vou Te Ahan the a | .. Consuurs gapda . 1 Voluws PWad for Then US Dewand YS. Denk Merd.T On the d dAhe detor- Ya. Wed Dewand 3 ewand for a: Muto cy does not depend on Ahe > dewand for any Wo TH ‘fluenced Aug fomous if) Nes we ‘4 2S deutand te ee and -On ihe Mborhand . when the ewan chepends fon Oy Coumtod' 3% SsSociored we Ox depends On the { avenge 22¢ON tor an Other, fouwody., Fs a ty Advani dwrived Sound. 1a 5 the fin Wand fs called Ndence and The dewand for the Parent peat * A 09 knows AWwOrowovg Dewand Wd the adewand ar Counnrody WRvOl 5 the 7 = ate wAhin ‘cero SonyI 4 — © = 4 i ARY 15 Aoiiyod Aowand. Associated uFith rhe Patent Cou wod fuedd od | Pritco own Of derived dowand gs leas than the pote lasses Of Aionowaue Dowanch. Few Dewand VM. Indusioyy Dewand ° Psu dowand weang Xhe Qutound Of Aewand faced by a the awount OF the Commodity sold a Poottferrt an Prue. ewand teang Can Seu teh we QWOUNE Uhh Tusk, ye Pustcha- > > Sed ty OW the buyers tho PWIA Pertind. Tn O perfec dy Coutpe tae WOH 5 the ‘Indust Mewand eunve WRU be dot Aewand? curve WAL be LONwWay Ay Sloping but ffruls ParIALel 40 the hottzontaWaxts - dewand a beyond the Comstol — - Fhe fw. Aur fous daksed fs whhtn, the Condor of the tio. Shot r1u9 Dewand vw. Long run Dewond Fo Short-siun demand weang Ane tsafng do- “Wand Lobe tong AUN Dewand Taly Finns 19 4uswte o> To “the Legg —nun, Jn ane SHOAL ~ stun ON ‘prifee Bt long run dewand depends on Other ‘ Jactorig ‘Deeitdoa Pritee. Ari CRAY 5 Ap: -4n dewand Can ‘be Tofluenced Advent Leeureny ate A eUend Xne rede > "dS ae * > dewand dependa : . Shouts Reward wt de egg ; Clastie than Long 7lun dewand ud? le tong aun deuand =| WL he woe Pladtte than short rtun 04 - tuand. Dewand fon durables Va. Dewand ‘O74 42 Paritshabtes®? 3 Goods whicn can be Used “epearedy On fon Qin? Pesifod ovte Catted Auiable ee Ont Gods whirh are exhausted y Used Once and wh foe Bored arte Cattedd Non-dvwoseem ane. 4 EEE BO Ae a RS The dustabl goods, ws be tonsu ute dans. Goods Wir wotort Cat, FY. se eie. and algo prtoducore a.nd food's Ws wach*nest » UTA ngs E16. On the Othe hand. rd Posishas goods way ve ConSuuste pods (° 4: food) OHLOLS 5 hevertages, eke.) On, produans, qos Ca > furl, a9 MALES ete.) vy The dewand for partshab. gouds é! Bo depends On Own Pree 4 Conguuyple Preow. atasies And 1d weang Preferences, = Ae. Rut ane deuand fon Auntarre qreds dope - \ BRA ~hdS On fewe price, expecied Pacow ede. Purtcha- Total Monuer 4 Demand VS. Norther Seourend Dewand > MW *he — Wostuay Aawand of 0 Commodity % ae otal nuwbert of rut fils the Como d® LOA Fr Lhe onde watt -On the OLhert ae ANA 5 Nu wyy uns SO Commodity Sold Fn a Seq tomrtol | - Went of tee hols woritut fe carted oe bet Seq ment | 701 Of dewand. | Fort QXoULplL 4 Aoral nuustoert of Unis of a cow | ~ wo diy SAB fn India the Wort dewand. On the Othe} a Nand othe voluue Of Sale of a touundtty Teoch provtn. 9 de- | ee fs the WOIUIL seoutent dewand: ewiand | aes *lao 4 Dewood ° ¢ sends fn Law oy de i ty when the psitor 6 Ornot ev St MMSE » Re quanrtr dewanded fatls and and tan | When Ts parte farts 5 4 dewanded aitgeg 5 ry wond o | As quanriy Other, Ainge mewata unchan od. 1 Orhert WONAS 4 Othot bin: Tewatnsn 2 legs Ake Sows 5 Ane Low x dewand exprieeges an Tnverge mielartal| and ~ Ship be. rR AF Qny Cow “ody Auden patter and quan’ Hy dewanded of y OU ° fables; ¥ Why the aewond curve % downward oping 2 on Pak, Montshall used the Law 0 Afuinishiag wLdtginal hands wry FY AD explain the down deed Slope Yrhe ABuand + h Cannot. Goods. | ee ee Se '= %* Cunwe fr his Nontgtnat tty Analyasa,. According Ww dhe tov Of afutataitn nat wees > 08 Ake tor an a ue “MOL UNTtHY dora acd Of an coltoat aaa a othe wore ps WF fys Ot Gene a frou Successive untte Rorneases,. Iq 4 Be tae mal watttty Of an foeno dy ane This, ae jt tone om “oan 8 the Guide tt ante ony Wy Gry (en 4 a totom re Acconci 40 Hay “Shall 5 O3 he Consuuy fice\ | 6 tty 5 he wht J Pow the add? Fonat unis of Yhe Cormwo- the wy, | less. pat Wwichag Ahad adtdifo nat UNF TF he has to Nora Cou eat wt sd Pater fats , Manitiy Jowanded 9 ~ doray; | wid UU ha 7A. ® wppostit C974 Price Wear - { > Quansy' landed Of any o Pi in -wed OULWO A? ty Lory {ar- ~wprio Prtal. Holy and Xhe lato of dewand Aten have explained. Quant TH Aart Of Tneowe o, Heer and Sunaye | a j ~AuAfon Hert i thedy “Inattiehe Curve Hat PQ. When an 1 the Pattee “of g Counuiodity atts 74 cous Alakively cheaper Secon = RS substiutes, S05 the Consuiy Pchases fe Of tts, Bao Sous. Quouny of As, Suheatites, Se THIS Ps NOLON t Prices. abeskttuaton Qf feet. Furtthert 5 08 price forts > "eal fs larous 6 ite LAU i Consuatunt ges, UP -Then dewand {or Toco at TT80S. THis se aa e ¢ noon QS” Meows SMe: Tho Sui ay Pree Affect and Subs down wy 7*uafon CHeod Fa Pree effeed. ‘Dat 40 the BPeiatfon 4 ‘neous Heck and Palsttturton ey Steet » Pritee oLferd Operates Ortawop — Tare Tate holds rive (UU ‘neous ef eet | WAY be 7, ve goods. Que » Sour ( } & Me cate ‘eft v0d8 20, \ the oF y hen the Prtice 0 ime ood) favle , \ -odi | AAS Aewtand sites aude | 2lfect. i neordt ‘Dut se ou arts dusto | \ | wWerals, j tae S{Heer - Yy the Substtutton effect | tenor q %% SAnonger, than the fncous OU Aled 5 So, | 8{ dew: } rat tne MBL OULWeIxhs the latiels quant dewande wilt mee OS Pree farts . Thus sf in Fowtth ~Aeritort $4 OY prtice ee quant nests vem arn And Allen explatned the law ‘i deans In this, ES = : ee Aewanded si0q and the detland cuive wilt downeoayy stoping ag usual Put | pifaea. : Aheste way he Souls strong inferon reds to1 Gobeeh nat re ; Heed fs Arieator than the pubstturton @ffec we ae ql pntee, i rel ne is. tated a Ge en Good In the Case i gs A 1 he of demand wtinal Kaa ana the dewan be wane ! i i"YS AS AM) a: A ii ° \ * Rxcentfong 40 Ane wus of deuand SY » | 4 wot — THEE AE Sows excepifong 40 Avis tory of dewand . ‘ius OSA 9 Tf athe Coumnd'ty # a Gtljen good 40 any Consu- tea Same he wR ag wore of" Dhen Rs pntee mbes. Auitsh. “TRS Phenowenon % Sowstiwes carted Giten's Partadox Robert wd Ye Gryfen Onee and to Tretand thon o afee tee Prtfee of potato 100s) MUUT | dottoroed hy 0. si'3e tthe douand fon potato. Porro vo0s then Commo the worn Sapre food of the people Of Tsteland -When the Paice % has to POM Len UP > Xhe steal Tacows of the CONQUULIS deertenged Cons nidecd Of ee 20,5 Ahwy t00te foreed 40. Curtatl the Consuwprian © 4 Dice es itor PORN 1008 SAP Lhe cheapest foods People Consu- | - Apes MOTE Of Tao Coupensare for the Aeeriease Fr the eongu- Sained quanttiy Ff weat . Thus 5 fo the case Of Gryfen Goody Prfee and wbsk- | ny clone ated Voor i Yhe Sour Astect¥on end the dewa., co | "SUP way rising row. te(4 40 right - cheapet Second 5 the Se 4.) = 0 fon % o. me Of TR] * exPRAL ON oe 1 A38ociated usith Conguut 20003 | prtices fst 5 conguuumre San NG. deture courtge of sprtees Lohen "UL Of the AWE. Then thoy tend BPeet Pres to sttee 4errthe in ‘S This) Ben ty FO ‘paned end 40 Geckos WORE UNS OF hat Mood Subs. dognibaxd Slope ig 1 {HS Case » dewand eudive wit 10} he) 1 Of tocou SOPOT - Rather, » they Wioe UPLOwA yfseng. 1 Yao, “Tedid 5 Sou fue, eople F af | Bot by te pate ee { udge ane quatit O{ the “product | | a6 2 price Of Any eomuodity nigeg, | Sows Consuuwig was think that 2% «, x = the silse tin potter. $! they yams yn, Watity ‘hag Gilso afen with | | OFM even idhen Re prteOnot Duy Wore units of the Cows Aleck Grononatt othta oh nS 'S Unovon asthe Yebten Werale god oa foes Ox mm a Hews tu prieefoug Aero'ed these tres 4, tonsprcugig dea Ses. Poral «Veblen hag wand is nq apptterste on these joo Qpods . The tau yfor in- | Fowtth 5 when 4 © . . . sand | ~~ “ta aty mea “hoot fry Padttieulast shane Tnerteages, a But | rifseg. The duyors expect am * aang don cue ote a iv ee. ncouls cane Avorthet fo meant futwu . 15 Wot. yen pale re 0 © of tye entenn 4 pusichage Wore Of thar share. Stuitiadtiy. ak n (ea > de of any Share {alls 5 Ws dewaned Aecrteases -30 > fhe laurel | ° i, we Wand) does no4 OPeLate ta the Share wayileet - : Uand. a rowKetfon » Such OS » Caz ete wine , addiction » ane eke poonte ad | gots *f Adieled Ao Such COULMOAT ES hey Lieaste im thy %% algo not opr 1 Fits tte two of dewand 5 also | f t want} _ | Shape thetre paritees cdoes not affect their 4 Nf de ea’ i- 4 Sth » Fr the Case 6f dewonstnatton Rlleel 5 laud of dewand WS NOL applftables When a eonsuumUt Btavite 40 use s 1 O) tomusodtiss ta osider 40 Tmelate others > RFS canted ri Se Ahatfon 2tlect- 19 thes tase, F{ price of a Coususodty “ MHBES 9 Ty Mutand wit algo othe. a "| ewan ina 4 ae 3 > nen) roe oy om ‘oh ; “y re ok pane 3, | y a uae SRK, | | 1 onset hs i ! d 7 " Ye ay 4 : 8 ° { * hor ts Claattety Of demand 2 iy The Alasricry of demand % the pwteentare chan ein the qua- 4 vaend dowanded tor one Poteet change ta an 8 the indepen- 1 deaf vartantes 8f the dewand UNCHON 5 CoLesita parous Th . . hal Mastielty Of dewand — Peep change to Guan at dewanded ; Pottemiage chanre in the fndependend q . vortan “ag ~~ |Z wreh ntespect AO K > lusping 6 8S fixed sts 5 4 n { Poreemare change fa z i = PLrtemage champe fin X | = SF x b6x% Z * 8 q \ (1 a | (a * Th a Ne _ + Te LT\ ee a . . eX XO Yokeepl uRally 5 Daxttat elasrierty of Z with SP 3 ne OA HO fixed 5 fs, ANNE wT Re = Poteemage change tH z Anat & Poreentage change tn > 32 Hg de- &z 4 8 4 | BR fewand 4 : ° ‘ fouse * Derenead Lypes Of. elastietyy of dewand 2 * Carved wsodity Soppose Une dewand function fon x ia, Given Yo Kel (R of oM) 5 where P= Pritee of x wane Ps = Pree 1 Y >Re PF Ne Money tncows. a | In ants function , Lhete ante 4 We can Ger 3 Agnes Of etag, | 0) Treoun elas fadependent variables. So APPT, Hetty % dewand |W Own Pottee Clastfetay of dewand (uy Grosg, Pritee Plasvietiy Of dowand she gun Tee reenge chang oa wan dewnnded Of any Cou ee fs ‘ One “Paieenrt change tn Fncow 2 Olhey > Teurarntns rhe Saws 5 2, career Lhe Tncowe elasrtetry se ana of i fox Chat towmodtty.. pendent | NOW> the fnrowe VNagrkery Parteemage (by YO dourand (eu) = - change fn quantity de £94) “Hoste Porteenrare change Ta money enoows 4 changes, chanse tn quanitty dewanded for X es oat Totaval Quantity Tadande REO | = ee Maerty Attanded | change tn mo neg frcows x 100 ‘lattfal money fneows J Wan ded) 4or x | oeQ + po o/s ou “= ae tet Lae [m N dx > > Hy OX 2 Herte 5 My 20 Neeariditng ag Su 2 Aways Posty. tohen , ee SO > KFS Catted o nonuat Good . Hence » for Nortwot fords 5 Avo. When . SK pg & es Al fon Weston oO [s and x dnte 2% PS cotted an Fofertton G04. Henee » % 800d and the _ 5a0d When Qn i ° ¢ * Birwet on Quon Rafee Qlasiferty Of dewond 3 | Other ARAgS seWdrnin the Sows oT Ake pritee of any Cowwo- ~ FRY chars vy 1h 0 be ZRSULLING Patcenrage ha; in the Beufand soo that tounuiodity 3 catled the On Areca potice assietay of dowand. TS Own pntee Clasieryy HY dewand (p) = Poteentane change tn Quandity dewanded on X Poneenrage change tm priee i Tnkaial prea | x 100 &X/x sx P| i, *p = SO “Sp/P SP |: = X Wo $< & vot depend Hoey POs % YO. Therefore othe Kan of &p | Hote 5 \ _ 2PACE 5 e oy i] O & hon the Aewa | On Ake % ae 0 x Ww nd ewstve fs down 7 Vol. 0 2p oid) oping > &X/gp is negative and the of , wy NRarive . When Sx So [ dewand Cutve fa UPLOt Bat tS ° ‘SORT then the valid oy gp Ts poste. : oven | The Oheoture yay Of Xho Masaretry of demand & given “8 lepl=_ Sep! vu 5p x ° ; * Ar035 Price Clasitetry Of dewand 3 x a All other tesags MeworeROy The Sawr 4 the Percentage change ia the dewand! for one Counyodtty Aus %0 17, change fn the Price of ang Othe ¢o Melty , 5 | OMuOd Fy ¥s the Otoes pittea elas An other WORRS, 5 the Crtoge, Price alasricity of cho. “Wand for x ta, the Quy Al.) a 4 ree change fa the dowand fon x | YW AO AZ ohange fn the pritte OAwwt binge steutdtaty Bro the Sau 8 Ys 3 6 SO GI08% Yorke Masrictay YX as Jove —_ | Cox = Poteentage chan e tayoana ton X the | Poteeniage charge tn tke price Ty prtice change in the Meurand fon x x 100 = InvifalAewmand fon x = change fn Prxkee ov. x 100 neta price oY _ | 3x ~ Sx wo =x 0 | BP Oo | | R | &/x | Pp 3Py / Py a = SK x peak ah‘ WU de- Hones Py >O 5 X >O » Therefore 5 the Sign of ey ne aan 0 “Pend On tne Sign of x and: Anat igo wh depen the nature Of the Aw coluinodtits. Pneste.. \ Ind Y ane DUbSAFUAEs Of each Othe oan a _ “HR Fo athe prea YY ot seawa we O Arertegse fnthe de- nd), WY OHA An Frertease tn tye dewand fon x ane “fore 5 Will Le poste And ne Cross pri elasth- “NS WRAY postive. Agen, when tne rwW0 foods arte com leutends 5 dewand for Y deesteases, ag, Price of y Fneneases and then dowand fon x <0 And entogs Pritee elagit- y xISts_no reIntfon- ~ In thar tare, a change Fn 4he rn a, One sxc luodtty dors not a tect Aye detind fort the or Other to. = — °. e &% wht ve zoe OP =O . The vatuy Of 105% Enifeo Pasting | | Secon * Engel cusve ° Yalus The Engel curve Shows how rhe dewand for Ny COU —_fFnqh atty “Ngo 43 Ake fncows 9 the conguut “hanges 5 Prices “Ng seManing ‘he Sows. The Engot cuntve fs alao uinSton ag ~ Tage " facous £ Sewand cunve? a4 44 Shows the stelatfon heqween SNOW and Pantity Aewanded. | Aoke; i 5 ae) ° dou, [ON UeQsurement of Ape Cesey Y. Dewand 3 6 | Linowo thay any portafon Of & Cwive 3 catled an One. — On any auch aste Of the dewand eurive we WO Weasurte the g i ahasieed 8 dewand. 4a Je] » Weadurewsens ‘oy are @loast- i “FY fs Shown. 4n te S Hywles Dd! ts the dewand eusmve and ABs an ante. Elastictey atu toe Weagurted On this drte. Supp. “Oe Toteally toe ane ody n « dewang ef Gor + Fort thes Wovenert, Here " Bes Oy the awouns (Pi-Po) and quanry dewanded | Changes dy (8, ©). Then the dxte Aastictiy Afuand $35 ne ee St 2% de on an Pneste- inthe de- X - There. | CRasrter- Hand tor tnd on X | € Clagtt- | 1eIatfon- | fn the AD-Adrt the lasticity 4 COULD - F Prices, AS» Ween do Qn ote . (2wie the © etaatt- ave and Yie- Supp- By dich ovement, dewandest and 135 chante &n quansiay Aewanded TorVar Quantity Aeutanded 4 2 = Br 8 , R-m Bo . Po BR = 8b Po -2--—=-@) Ry P-Py %, WRe--- + _ _v Again WR Can al30 tole pag Ane tek Lot > ~ Nal dint and then wove Pow Biwd BG g A. In thay COS 5 Fatal Davee and UaNrFiy Aewanded with be quar 4 PL and &, > ana Chame fa pritce and Wantry dewanded wrt be (Py - PB) ond (9,-8,) respectively, Thorteforte the arte Clasakeray of Dewand %& 6 &o- 8, Po- P &.- 8, PB Sa eT ee Sy) PB Po- Py 8) ® Courp cain @ 96d @ 5 we see thee the fist pasty Of doth Ave ecquntisns ts the Sou » reeds 4-4, o 8, But th | Second poo F Abe ae; ° RaPe “Rte ° “Hens Ta Value (Pe é BN So, the Valua of Clastiery wot “Ba Bi) a tg 1 final potas. Fon Suet Fed 2 Change Abe tafifat and 13. other Po: On Ws Noconventénce 3 fneteng of Aabg "Fe (Poetp ‘ a be Total nteo 5 199 Aas thei ave. : (Bert) AS the FeRRat pnke . Stuflanty, Bota.) o token as the Tnital oe 2 dowland wt be 5 \ ‘and. Then tine Ate lasktetty ct ae = oh AB. bak =Libe athe G8) RoR = Orb han Pie Po 8,+8, Hore, Pitho to fo, otwoays positive. Ruy Bre fe, negatives change ta Price Torrfal potice ole 2 Pi-Podewand Br Boro and (P.—P) CO « Thetefones When Khe Bo — Pt my ts, — (O17 Bo, Paha Absolute valu Of arte clastittdy fs, oe 848, This axe dlasitery tgaiies Ahe avena: e lastictay VOT the ante. Plaster Frout the tutta Valus Of this date Pater Rlasitny 8 dewinnd we can Get the “Petar priteo Clasrictty 4 Ruane. In ane gue, *{ Petar a woves fowards As rne * axe Pritee asrtogy WL ale change . x: hae °F Ake aie mathe astietiy ta tanied She teoint prt- last *Y & dowanad OL A. St uPreott 2 as A>® ane pie rb the arie Pritee asatery’ WU be the poim stekty % Peurand at &. d to ° ¥ * Lessuneuent of Pofna Erfee Clasatery Of deutand ° Petar clasiie " Of demand te the lastieray WA On the dewa, Curve. 102 tan ee Priegg, Jo thts function, ¢ we AS BA ate fut Cured Ot ang pein, the demand dunetfon a8, q=i(n) lOant 40 wuasine elastictyy a Bein (P,,.9) © Qlasste WIL be en = Po Ad : 3 og ted mee CWand ¢, ti vata OF elastin ee 7 aanane The apy ab G, 2 as now 3 Qaeee 8, Pp ss negative and is [ual to 4 ; aos on AE Therefore 5 Point elagererdy vlad Be €c n og “4 > ep = + g ~ 5 \ =- © 2B\ -_ Pe i780 mac (-S oD oc ' . There jon, the aie JA tan algo He written ag 5 — PE and "TK od Cie | Ame absolute volun Of Ane elasttciay g dowand arc > Tasty | lop, = 22. 2 OE we 7 “Lowen Sermiont ue OD EA” CA Uppat Seqwent | othe Yai-| . _ Tre Prk dn Ants Way > Pom elasifcrry Can we Weasuried a an ies orhe ON A®- For exauples abaowre tlasriity at c! Fs es 6 _ | 4 > co Re = oe + Tafa shows that Ane voluw % pritee olasgigs: 4 x EA el ° o ° na 2 Of Mewand AYyors at AUyenemd Pots ON Lhe Sroight ane ne dowmand cuvtve- ang Peet NoWs*{ ¢ fs the wid pote OF A® othen Be=ca Feo OF [Atgune2]. therefore > \ep\ = 1 aa the wife sode{( Pe tS aqT PHL Of AW-1] @ f5 A0-Ahe a (Roby ANS We 9{ the wid Point 6f AB > rhen XS , Beycd and Bio 1 S0e%0 ~ $he Toft Of the “Wea potat » nd the 5 lepisi. fe ts to the night elagti- {the wid “point ©{ AB oben ) \ WX have. BELA anad Be a ‘ A Wo Vero len 21.4 Cree cA 34, Sho- . ° 4 & teing ‘des, with, Be = bana Bees : o F Tietefone» at ®o pl £4. a9. 14 CPs very eloce + | Aa th-20 and a > * 305 04 ae lp 20. An ants ony OF tan see Ahad ah Absolute Va % Rassfety itt Vanty 4 OH on 4 SAvalght Wine dewand ewdtve. we Will Aiscuss how the Point Sead On My Potnr Of the Aewnad CU Clasetetty Can He WANs urte* « 3 Woe, whe a % Nol a Sindh " Kine but Q Curve. To We Ariow «Aq otnt » We have to Point Rlasiterty ot any Pl > PA eS a CUTIVE at Xa ant eo °, a\ xy Xe a y® fe GO te “Or and Tan, end e. Then Pott the nee ot asuy a nr AE Hortons Ae 7 ~ The wt L tend ar nn Rotini. > Fta TUules, happen thay fet Ane Valu of Prifee cian al oe is “the eta PIMs Ong Mon~eneast dourg, - Fort e AUD 5 Supp -| p' “082 thy equation Of the dewanne fine N fay Pare 5 toherte N A= Cong, when pane > then qQ-o ot Pp D OL. _@ “ap = < : Now. Mp ue oe 1 a Pep ore = pt 7p ° $25 leo] 24 las Heres the sosite, Casatety, oof Peurand a4 Sach point fy 4 = Sp 14 we Asie dye Wan, Ona Aaron oT” wit be Do rleetOnguiart 4p, Porta «Tre os 1 w BO | we OKLA tons this demand \ ‘ ae OWE Fo aid the tien OF at tech KS? - vee | Zangles Linder jee foWe ts equal | yy quan 4009 In thee QUtes she MHA Of the Ny ' v srectangte OuPN a Neto tte Olea | * reckangie NiThis fg | ea R80 true 46S att ha points on g 7 iy the awive Dq1, on DD'. ® 8 SY dev Ho TCE vols 6f she elas atiey ay dew ¥ untty at each Potton mole tH ee ee,= ° ond curve and _ * Relaifon between Slope Sf o Remand Pt VNosRg demand & 9 4 A RIS Sdewand | Aewtand: eewne Awa Jase R Should be noted thor the Rope Of 0 ag dn Xhe eve +, tl ve Cosrietiy dewand tute Lwo ATyoienr concep tke dewand 4 he “Se demand funerion P={(Y) 5 Ave Sope of a Ne Weis OP wife Q= 2. av » Thus, *hey ante Nor age aq 1 ap TA ean be °@. + Thare ¥3 alk no connection HerweeN Aheut. elope re and Seem thar A090 dawned CuDtves Way have the Soult ie Ongent Duy Affetenr elasaRtikes ad each Fortice (Re. 5 Saws puter), Then In owt $32) 5 ABIAB . So thet opes aie equal Rud Poin | ep} e , 1_ ale! op PI ate = Be _op, Ageia , tpl Mes BE _ OD CA DA cal DAY - 30, 0D oe - 805 1Upl at eS lepl TI) ag C. Thus, AL eae h ie ane ts Wight than |p| on *iotert AG. we can ag tier tn Md euvive shi4is, pa "The | tet TY a veneaot geusa 4 ~7OMAY 40 the right > then Ye absolute value f pritee eto Vthot | we of dewand fats ay & given pritee wan / ar Aig® > Supp-) Ah FO) x a > tohene iA yy A . Nant | Dd | bee ° D eS B74 jo Agata Ta put $3@ 5 Soper ote Sau buy og , | Mastkeryfes, ante SFfotend at Rach quantity « A © olepi= Of be “Bo Ns lepy = aay =B2 aw, BDL BD. 805 109) MC < lepl ot ol, OR es BS Hence we can aay that F QFmeast doug Yous we SARS artartety A© the mtyht» then the absowre queef Clastinesy ‘Y demand? wit atso ad a given Aoain TA Can be sen AHA woo sri hl Aine oee >£ ~Mand cures wor have Doren Slopes but 3: ease dewand Sf dewand at each GomPee . drow Fywed), Ahe cdewan“ON Stwpos . We Consider Claas “Band a FTL Seen Xhay ¢ SaPortly , 7 RE on Ap, ; pt ~Tmaree pi but Aff ote- | N00 —1Mence 1 : A®anA AC have the Saws wens fee 5 ° QQ ~OF Aa? FOLEA, ten] WE Bo = ar - HE op ler) at Oa ns = SF op Thus we can-a, ina 0, Lepl at F = FK? DAS % td the toga 20D east Pruand curves having the Sows pao Foretnop4 Seco © TOU have Sau. Rlasttetay OO Fiven ifeo (t.0., a4 och PPritee . 6) x P O4 ay) A §Q i D oT the Awo ante be Une demand Gusiwes, © Shu Aantity Rrtere Pts then the abso- mates vals Of elas, tetty 8 deiand WT be the Sau af pony —naea any » Fon Sxawibtes fo ow sigue , anitry dleun. 40 4 ate AWMd ad! fe Sau = OD) 54nd the wo degana “ 0 = Oe fhe Sous qWansty, IMOIeeDr Now, tem ol eae Fie eee 7 = Be THUS, ep) Toa Oe _ le@pt ad al, = Es Wonk . However 2 Awo atts bi Wine Dewand cur. WS Torertgeoy COCK Other . the elagata Ss Of the Awo rwries “uc 6 OL Aho Thersee tion Point can te P u 5 COuLpartedd) Cowpanstin thet sIo- 53 “pes, The Ferrer the Sone the Os; He Lov0e Fy e the Absolute valu tc & pritce lasttery And vice -ver- ¢ re “ans 2 Hy > the two de- i § band enivde & ANd CD PnAay-F wee Seoy Rach Othe WE. Now , lepl i Woh nA aE eg ne 4 Ve WAL O& on en me fs 4 eopen ole Now A® fs Abe s ‘ “Mane curve ABs has tower Chasttey Ahan the 4 larret —- ee)Awteep? | Aeach | ® SOL sand Ne Ad30-| QU Ot VY cleum! A0 Ke wand >pl at | 4S, ]epl nd cwr- 0 MLOtVeS 3) Aewurand cute CD OA rhe *rotserion PO%NA- Thote Mie two Apectal Cases When wpe ANd olagrticty vi Trverselsy. 2 Finer > the wwe Aewand ewiwe Ps o honfzontal S10- IgA ire 57a Slope fs ZAC Ana elasaretty ts Tock OL alt potnis. Tha ts Shown fn +3). Second 5 cohen the Mewand ewive % 0 vorteal stniaight Vine Tis ope ts ingintty Tour TS lasrietay 3 Zep, aa Thee Fe J : | ok a potiis Thre fa Showon fn +4@) - sgQ 53 z 4 An the $A Casey Dewand ts Said to be PPferdty elastic and fa the second Case » dewtand % aaed ‘petferdrly Faelastte . 7 = ¥ )wWhod {S Awrtal revenue (TR) a —_— = eer? Total stevenus (TR) 73 Ane Aoral Facows Pow sere, the | Product - Four sete Hs Producer i the WOU an ges MONE whieh Ts Unoron ag otal revenus of dhe fiw. Supposes T Sells 4 untis “wet ad Ake Pree of =P4q. Of Ts prod. P peru. Then totar sevenur (TR) . ° ) Whot is overage zevenue (AR) 2 Averiage steverus (AR) fs the otevenus pon uaa Of be PUA. Woe divide TR 5 the nuuber WARS Of DLE PUL 5 We Average reve mug. 3 * " 4 “ ° gf Avertage evens (AR) = RAL Revenus Suanaray of Output or “EZ > Whore RK is the Aotal v revents and 4 *S ”fA © gpa 4 output we now , TR= P.4 AR > TR PY op . L 1 > Qverage >eveRus fe, moaning pu price - * Chet & worginat revenus (ue) 2 Dhea the four setts one addtional urkt 9 Sut put, Ahe Oma stovenus WWined fs Called the wasetmnt mevenus. rac hewattentty 2 HR FS the rete of ‘hange Of TR With reg Aha: Peet 40 0. change in ourpur , Keg OU, Suc Mae ACR > NRF Ahe Slope of a TR euntve . 40 NO ThE MR Of the nth oes the Afforenee TRAWLEA Ahe TR dom nh untis and ( At) units of Burput 25 Me=Ta~TR,,, « . ° 1 * Reexon oy ° pee i 00g TR AR and HR ° ~ ont | TO Afecuse the “elation auto 12 Ogu, a J TRy AR an NR thst i at priteo. tq nonstant and the Lu, tan ‘ nate Puourr of Butput Gt thes priite . This £ ake ste The 0 Fu dees tH POtteetly toupertitve wate. PR Wax we When, Pritee ty TK oTR Py frerea- fare E% roFortfonael wth Sneeasted URS Of oeek pre. A "3 fixed and ts Oye “qatto Ap 4, Other Words, TR= P.qe And as Pistixed " OA RR aig =p ” | aes & 1 - OO Ae eS i" do, AR = MR a p + | Hotes AR cwive WIL be PAHANEL Ao Ahe and HR ewive ult Cofh ctdle ustth Ane AR cunive. Thea, & Shown Yn Htowre(* TR Cuwtve ie, o Sortaignt lene passmy Arotough ‘the “Ooiifin. The Slope x Khe Lene SqUnls 5Fouts | eve AUS - ith >te9- De of ‘ALhe 25 | R ofirst Lan he Stu | wiley - Frexea- tua. Oords., ; coe ee Now we AIsuM that Prttee 1 Mot {era ta Voxites uiith changigg awount Of eutpu eee Awad whe fiw hag Mig? Lowot the Yori, = eee SAU Wore and wore untis of outpur. A ah atin Such- StAuation gr an Rupotjertty Coumperirt : Hee 5 TR= P.q and P Ps not fined BP ap $8 40) jp MGR pea ge CR AK= TR . PA Ly 1 L “The Shapes Of AR, NR and TR wives under ths stu. -oaion have weed shown ta 4 wie) + WR ASSUW Lhat the AR tue 1s 0. Mtriatght Une 95, abe HR tustve ust alse RO SMwarght ine and oh WI Lh. thelow Ame AR Cwwive - The TR eubtve ett root friow. the Onigin 14 wit frist De UP WOId aE sing» reach 9 Aly Waxtuuw and pat then be Pi Aatutag te wit weed the quan- Q ey HFS At the Potnr ‘tohe- 7 HEM AR fg ZrO. Thus when AR fx x10, Te fs Also Zex1t0. Fwrthets TR wit be Waxtunuut GaN Ot that lover O{ Ut pud Where MR fe Zrt0.Ree Aictay of Tag AR, MR and elas 1 Of Relation Conceitntn: AR, MR gaged See a pore cone te ARNR and Retoste tonstdettag Lhe relation erween AR, *P 5 led Us sine Aetine AR and HR. 14° TR sepnesenys Joral revenus “SE ANd F represents WMandiiy TR =P So “that AR = me =P4 > P Tepresents prt- OY ouput ap1d5Ahen Andy ne ATR) a (Pa) a | ay The >on Derween Ag AAA UR follows the Sau Generar eurte ag the elation her nal. Th WRN Avortage and wax t, MS5 when AR ty arttn, Whon AR e f J oH ust Ho ess than AR, THK. S Constant , QR why we AR fs vitae : Aas 2 Aqual to AR and When Not ing 2NR whi be Qreator than AR. Ths, tute ean | proved Ona fottowg OO * We ts pag sWhate Pst(q) At the AR etye f Aownwortd Stortag then “he - BP og : C ag “O° . Now> tte) ap dy = P+ & | Ons WR = Ag a 1. BP The . ap Ay | dens a race > ar <0 5 the 2 aestuy On the right hand 9°46) “te ny tive cond, therieforte > UR ZAR, rhe \ “Fuster, if AR ig tenatant . p du | Case =O an R= AR On 8 aL | misting ° ¢ SO and NR>AR. ory , Constdey NOW the >elarfon Svolsen. an 1G AR RR ane Classteray oy dewand. mre a eea Rs deltnacd O95 We know . Las eethy of dour nd oe cia) oleae. fF ep= St PT atanys getter aq ff. apt ag Po aa5 lepl=- Geog ; Ae valu wa ap OT me OW 5 A(12) pag. ab e 7” aan pat = eee ane = Pl a), = PD GE ag)] | . a_i . | Fl" CEag| 1 AP, \ | wR = P (IMT) f _1 a BR = AR (A oD) vant at | Thts fs the Hequixved snelarton favoring AR, MR and han ARs) ClastteMy of demand. . ae ee | Note thay when Lepl =| then UR =0 when epi >t 4 ahen HRSO : Wher \ep\ 21 » *hen MR ZO 9 The Helattonship can Also be wot? = — AR VR = AR Teal Ory AR-MR = AR_ lepl This shows, Anel 5 Aho AiLfertence herwWee depends, i 2 ; i % ARond HR e TAV eT Se ON the Absolute value Of the 21agi¢- nd Side “the Op euinndS fe Ake Clagitery 4 tho Tffotence deeseases, AND vio —v | 0825 “when {ep} —s 26 =AR $0.4 the Tura Aten Ags RR, S The stelaifon TeAWeen AR oR and elas. tavorsin. “Ry CAN He exptatned with tavolvint ae Ane help Of Ane fortowt MW. le us Suppose that AR And UR arte Strat i Torenesting TLAATON HedLoee N Aged uR ata eH) AS fottows — of Aetand frereasesit they ante sanaight Mes Lhen ms {0g AntoUgh Ahe hats - Hh een Ane AR and be Vereat axts edn othot sonrtdss AR UT vised any pertPen- ~Ateuteot Artacon SGy AR on Ane veritteat OX?S. “In the dita. “QP thts Muplies that 5 PN = N& This tan be prtoved 5 43 fottows Total Revenue can De represented of4 hor Ahe area OPS@ On by the -oiea OTVA Cte ater undo Ane Warginat Nevenus tustve). 117 oth Of thew the artea OPNUG “fa, Common . Hence the biFangtes ThN and NsU We oquat tr arten. “They have also equal angles. Hence ‘thep equal Yr aly AESPAAS! “Thrs, Weang, that “py = NSS * “TR= 80 and TN = NU- Saee, BNENG oo Hepresents tbat the KE tine Divers the. Pripend cuter. SP. This prto- Also. Muyptfes, Ahat the Usolute valu the Sispe OL AR FS uote the Absolute valur Of th 2 Slope af AR. Absounte Valu of Supe OR = ais and the Absou a, Swope of AR = IP_ “Note Ahat, PN at. ps n thotefone 5 IP _2 yPS 2 es 2p This, PrevES the steguty- Consider now the Relation favolvin; ARS HR and Clagrtert Of dawand. Note that, at roid] Bo lepl = OP/p+ 5) AR= S30 = op and YR=UQ- Henee, RAR = 3Q-UG =au=pr. Thenefortes ARR oe tpl Oo AR Hg Ag” jo Ons Ne= AR( 1 1 ) . 1ep) which Prtoves thy Mequited, esury. Thus we can Prove an e@ relation Tee treaty also. WR know thay 4 the wird point fhe Uneast Be wand Cuntye °5 \Cpl=1. TS the VER of Ane wi Potnr » len) si and the weed-point olepl <1. S05 (o>vIes pondigp Ao Ahe night Of TTnext undo! ea 1A NSU Ace the NS, g mesems 73 prto- Slope YAR, Ab solu- 1 ay Ps result. oivin att G- Hence, OP. Teer AR” epi on ip) aleo- Aewand dS1and | spondign AD ANW wid point, Ne =o to Lhe Le Of Ane Wd point RRYO and to the rfyhd Ml tre wid point »HRZO. WR Have shown tH fn out Qute®). fy tts 4iqure, AB is the AR Curie And Ha wid POM % C. So, aL OS lepl=l- Coresponding jo Abe point & 20 > ak, B ot Fe sol DSNR=0 fo >MR eure tre horizontal axis, “To Ane left Of the point @ 5 lepl >! and HR>05 ie Awe MEGHL OY the PoTALes jap) Zi and MR when \el=1, -P da | Y ap *! Org - Pp. aq _ om aan thy > V+p. _ . ‘ap =O ~ —O) Agata, TR=PY 5 whore Y= 4(P) Sos AcTR) av _ > = Trp. —This Tuite 71130 in p. Uo Aol TR WI ewan the Saws dus 40 4011 on Propostaton 23 hen, lepi >1 > TR WIL attap With the {00 to pate And wi fon uti, the stige ta pattoo . When Ip sry ap at - ap > Mo —p da >L dp a On, L+P Fp <0 ary Bur woe know, A+ pda _ 2c fort 1 @ 30, os Tad t6 TR ui Aan > TK Wit aise tp Jats and us TL ty Tf P ntigeg, Pro postiton $2 “ety ere? Wel 1, Te tee “8 ISH Abe ote ta pee ana © fay With the AAU tn priteo . Me | fohen \é Eat te pl —ip ap <4 On, Vee. 20 >o ! ATR) | ) Now, the Lys HP HESenta oom » 304 ae, 20; I” thes, sea AM OS p dane, te ANS and as putas, § TR atigeg,. | / Ol Can also Prove thax the Converges, & these Propo- ~SiYfong, MWe Aso Anu. m Stuttorly 5 UR tan Constder the by chan ef elation hetwoeen -TR and ‘Shirt 9 pny *Y ttout sod. 1p PW CAGE eaten 2 o5 CONS the vq of $fo : a neemPe Aon , and ree and 8) =>0- datFgog 5 Prtopo- RK and Shaul =4) WR know TR= PY 4 where P=4 ATR) _ oP oo “ay = Pr ay Vy TR stewains the Sau dur A change fo quanstay 8{ output 5 am =o On, Pa q ae de om, Ph aq f Vv ap O%5 lent =| Stutlastty 5 when TR wises Aus 40 otfae ta Y2On TR ous Aw 40 4a fa Lr 88%) 5 and \epl >t. Q Agata When 1 TR fons dus to nttse fa YL On TR ats05 Aus to {Ql fm Ws ACR) Og and \epl <1. ay right of the "+ Upto the but VPIST aned ig +The Ris “S Weans tha: Price dart. a TR ts Upward A Eo tepy =| an R 15 Heesteastn ag ue pater Jats hich te co, | a POs ° The FR CeUIyR Peep Nerve our etow, ffs Inerase and then ae Al Zero Output » Y=O and TREO. Stiuiterlys a=0- TR tutye \ OD, P=O and Ahetefone TR=0-TR BUrPuUr Teve ? *: i 1 the frou the Origin and Wes Ae uandity Ons Stoors {tour a Point whore prtee fs zeno 2 NRO * wher f dewond Joneaasiing 7 a Forecasting Weans esttuarton | the Ptohadle me Of On, Vortianle +f furwte - So, dewand forecnsites WANS °SHitatfon oO, ~D future Rowand . Y the 1% On estiwares, the clo - op? i 4 Sows fo forwatton » Ad Jorecaattng. ot Way te Y lwo Av pes mye 3 Por Fimat othe FF way iy to CSATWOLe the total Ov ar de Ney Aewand and ang, ARewpr to Supply & portt of this and Wogtlnr dewand. - nto Setond 4 the day WAY eartuare the dewtand fon As own Prtoduct . Thee, 4 cetunt mA Partfeurat fru wlay However» the four wil ates be Tartorested ty ane Moot Hewyned fo orden 46 know 40 what extent ey TA can Tnorease ProdUorLoN Ot Yale .The mut | apt Con toy. Ippropr Pare weasune tO Capture a part anoy Of the Waxttiet deowan Only Set the volute of Cape: feeturte urarunt deutand eg knovon. oy : mI ¥ Discuss the Werthods donecasting Qeuand lon an Apo. Saeed prodey MASAAG Bruen Jon tout > — torte Dijorny wethods avattadte 40% forecasting adeuand OS g Stabligned PAU CaN He ANScb0d Trg two Cereporties The oO Swiwe Nethodg Fens ®) tarsi, Netho de ~~ Tnthe suivey werthode > OPinfons Jou. Ake tou 3 the Seo SeUenta and xf & _RKPHRS Aye Collerredd and estiuared On the bagi MANE sAgrga the Yoga, @ *Sestfuated On TR TS Of peak dincin ty eapleasiog Sows Watts ~ clechatques . Fe Ow Swivey ve ody ° ~~ Sit) Weheds | Suivey wethods tote ——_ | TRE wosa tuporitand 3 a en