Elasticity

ELASTIC--Typically above equilibrium price:
When price increases and total revenue decreases the elasticity of demand is elastic
When price decreases and total revenue increases the elasticity of demand is elastic

When price increases or decreases and total revenue remains the same the elasticity of demand is unitary elastic

INELASTIC--Typically below equilibrium price:
When price increases and total revenue increases the elasticity of demand is inelastic
When price decreases and total revenue decreases the elasticity of demand is inelastic



Elasticity and Total Revenue



Khan Academy-Total Revenue and Elasticity



Elasticity coefficient:


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