Chapter 6 Elasticity Flashcards
1
Q
price elasticity of demand
A
percentage change in quantity demanded of a good resulting from 1% change in price
|(%
2
Q
elasticity of supply
A
%change in quantity supplied / %change in price
3
Q
inelastic demand
A
> 1
4
Q
elastic demand
A
< 1
5
Q
unit elastic
A
== 1
6
Q
if elasticity of demand >1
A
decreasing price, increases total revenue
7
Q
if elasticity of demand < 1
A
increasing price increases total revenue
