Elasticity

Pt5.gif (1271 bytes) Three methods to find the elasticity from a demand curve

Pt5.gif (1271 bytes) Relationship between slope and demand elasticity ; comparison of elasticity among different demand curves

Pt5.gif (1271 bytes) Relationship between total revenue and demand elasticity( elasticity = 1 : TR will not be changed no matter how price changes)

Pt5.gif (1271 bytes) Income elasticity : it's impossible to have all goods with income elasticity > 1

Pt5.gif (1271 bytes) Cross elasticity

Pt5.gif (1271 bytes) positive for substitutes

Pt5.gif (1271 bytes) negative for complements

Pt5.gif (1271 bytes) PCC and ICC

 

 

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