On the restrictive nature of constant elasticity demand functions.
The very restrictive nature of systems of supply and demand functions which have constant elasticities is well known. The same is not true of single constant own-price elasticity demand functions. This paper points out the extremely limiting properties implied by the assumption of a single constan...
| Publicado en: | International Economic Review Vol. 35; pp. 1015 - 1019 |
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| Formato: | Artículo |
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Wiley-Blackwell
November 1994
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | The very restrictive nature of systems of supply and demand functions which have constant elasticities is well known. The same is not true of single constant own-price elasticity demand functions. This paper points out the extremely limiting properties implied by the assumption of a single constant elasticity demand function. These properties restrict the magnitude of the elasticity, and characteristics of other demand functions in the system. Reprinted by permission of the publisher. |
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