Economic and Game Theory
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"Inside every small problem is a large problem struggling to get out." | |||||
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Y=f(X) When X changes from X* to X**, Y varies from Y*=f(X*) to Y**=f(X**). The percentage variation of X is the ratio: dX/X=(X**-X*)/X* The percentage of Y is the ratio: dY/Y=(Y**-Y*)/Y* The elasticity is defined as: E=[dY/Y]/[dX/X] or, alternatively: E=(dY/dX)(X/Y) [Manage messages] |