Page 3 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 3
Session Unit 4:
14. Topics in Demand & Supply Analysis, p. 1
LOS 14.a: Calculate and interpret price, income, and cross-price elasticities of demand
and describe factors that affect each measure., p. 1
Own-Price Elasticity of Demand, p. 1 Own-price elasticity is a measure of the responsiveness of the
quantity demanded to a change in price
It is not slope of the D –Curve!
Lets inspect graph p. 3 again!
TR = 4.5 * 45 = $202.5 = maximised
Y = a – bx/P = a -bQ
