Elasticity Practice

Use the graph and data below to answer the questions regarding elasticity.
REMINDERS:
Ed>1--ELASTIC
Ed=1--UNIT ELASTIC
Ed=<1--INELASTIC
The following is the formula for calculating percentage change:
The TOTAL REVENUE (P X Q) is another way to measure elasticity:
If price increases and total revenue decreases=ELASTIC
If price decreases and total revenue increases=ELASTIC

If price changes and total revenue is unchanged=UNITARY ELASTIC

If price increases and total revenue increases=INELASTIC
If price decreases and total revenue decreases=INELASTIC

Price Elasticity of Demand


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