Talk:Price point/Archives/2011
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elasticity is high beyond a price point
user:Patrick, I am not sure about some of your edits. You say that elasticity is high beyond a price point. That is incorrect. As I originally stated,elasticity is dropping beyond a price point. Elasticity gradually increases up to a local maximum at each price point, then drops after that point. Also you seem to take issue with the issue of local highs, waves, and crests. If the overall demand curve was perfectly elastic, (horizontal), you would be right,a wave pattern would create multiple quantity demands for some prices, but (and I admit I forgot to mention this in the article) the overall slope of the demand curve is downward sloping to the right. Because of this, the curve can have a wave or scallop pattern with multiple localized high points. I think it would be best if I learn how to add pictures to this 'opedia, because they would make the concept much clearer. user:mydogategodshat
- When you increase the price beyond a price point the demand reduces rather sharply, that means the elasticity (in absolute value) is high (e.g. 2, i.e. with the sign: -2), I would say.
- "local high" is confusing when the function is monotonically decreasing; there are crests, but only when you look at the graph obliquely. - Patrick 21:20 27 Jun 2003 (UTC)
- I've added a diagram and included more detail in the text. That should clear up some issues. We have to be very careful when we use terms like "beyond". Thanks for challenging me, and thereby forcing me to be more precise in my language.- - user:mydogategodshat
Curve not smooth
To me smooth refers to the derivatives (mathematics), I think the word should be 'concave', or 'non-monotonic'. njh 05:41, 16 August 2005 (UTC)
to me, the opening to this page is a bit too abstract. Just a thought.