Price, Income, and Cross Price Elasticity of Demand

Price Elasticity of Demand = Percentage change in quantity demanded / Percentage change in price

• Ignore the sign
• If the number is less than one, the good is inelastic
• If the number is more than one, the good is elastic
• If the number is equal to one, the good is unit elastic

Price Elasticity of Supply = Percentage change in quantity supplied / Percentage change in price

Income Elasticity of Supply = Percentage change in quantity demanded / Percentage change in income

• If the sign is +, it is a normal good
• If the sign is -, it is a inferior good

Cross Price Elasticity of Demand = Percentage change in quantity demanded for product A / Percentage change in price of product B

• If the sign is +, it is a substitute
• If the sign is -, it is a complement

Elasticity

Consumer and Producer Surplus with Dead Weight Loss

Market Equilibrium and Disequilibrium

Prof. Ben Powell Explores Myths About Immigration

This is mainly a Macro issue more than it is Micro; however, Prof. Powell provides a very interesting take on the issue of immigration.  What do you think?
Isn't economics fun.

Steve Horwitz on the Rich and Poor

Dr. Horwitz provides a different take on what is commonly heard.  What are your thoughts?

Harvard Professor, John Miron on Capitalism

Just some food for thought as we begin our journey through competitive markets.