chapter+4

4)it affects a demand curve because you have to think about all the changes that are going on not just thinking about the change in one certain price
==== 5)The housing prices have crashed quite a bit but the graphs do not make much sense to me that aren't easy to read. the median seems like it is doing really good but then if you look at the payment plan it looks like it is doing really bad. ====

7) a. quantity demanded,the only thing changing is the price. b. demand only, not only the price is being changed. c. quantity demanded, prices change so the demand falls.
4-3 notes elasticity of demand- a measure of how consumers react to a change in price inelastic- describes demand that is not very sensitive to a change in price elastic- describes demand that is very sensitive to a change in price calculating elasticity take the % of change in the demand of a good divide this by the % change in the price of the good. always negative price range varies at each price level depending on demand. values of elasticity if demand for a good is at a certain price and is less than 1 it is inelastic if the elasticity is greater than 1 it is elastic = to 1 is unitary elastic factors affecting elasticity several different factors can affect a persons elasticity of demand for a specific good availability of substitutes it all depends on the other substitutes you can possibly get ex. concert tickets are not really able to have a substitution but apple juice has many different brands to choose from.