Price Elasticity and Linear Supply Curves.
This article discusses the behavior of price elasticity along linear demand functions. Prices and total revenues move together. About the most shown is that linear supply functions are unit elastic if they pass through the price-quantity origin when extended, elastic, if they intersect the price axi...
| Publicado en: | American Economic Review Vol. 57; no. 4; pp. 905 - 909 |
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| Formato: | Artículo |
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American Economic Association
Sep67
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4505197&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4505197 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Sep67 vid: 57 iid: 4 pid: 22 pub: American Economic Association artinfo: ui: 4505197 ppf: 905 ppct: 4 formats: tig: atl: Price Elasticity and Linear Supply Curves. aug: au: Houck, James P. affil: Associate Professor of Agricultural Economics, University of Minnesota. su: Elasticity (Economics) Demand function Prices Price flexibility Supply & demand Revenue Developing countries sug: subj: Elasticity (Economics) Demand function Prices Price flexibility Supply & demand Revenue Developing countries ab: This article discusses the behavior of price elasticity along linear demand functions. Prices and total revenues move together. About the most shown is that linear supply functions are unit elastic if they pass through the price-quantity origin when extended, elastic, if they intersect the price axis and inelastic, if they intersect the quantity axis. Several recent studies used linear functions to estimate production response and supply elasticity for important commodities in less developed nations. In each of these studies, policy implications might have been sharpened had price elasticity behavior along the estimated linear supply curves been considered in conjunction with the published elasticity estimates computed at mean values. The supply elasticity varies along any linear supply function, which does not intersect the origin. At higher prices and outputs, the linear function's elasticity approaches +1.0, the speed of approach depending upon the size of the price or quantity axis intercept. Sellers' total revenue always increases along any positively sloped supply curve as price rises. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1967 holdings: @attributes: islocal: N |
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