Monday, January 10, 2011

Elasticity of Demand - Part 1

This videos introduces the first worksheet and gives a sense of how students should use it.
Also, please note the following:

IMPORTANT NOTE: I made an error in the video in confounding the inframarginal buyers with the marginal buyers. The error starts at around 2:05 mark and ends around the 2:35 mark. The correct description is that it is the marginal buyers who buy at the lower price and drop out at the higher price while it is the inframarginal buyers who remain even at the higher price.

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