Own-Price Elasticity of Demand
Price elasticity of demand answers the question
about how sensitive a buyer is to price changes. does price or quantity change more?
What slope is more elastic?
flatter slope
1 elasticity
it is unit elastic
Demand Curve Slope is
negative
Supply Curve slope is
usually up except due to decrease in marginal productivity of labor
elastic demand
when elasticity is greater than 1
inelastic demand
Between 0 and 1 elasticity
Elasticity in terms of graph
Elasticity is the percentage change in quantity demanded over the percentage change in price.
What factors increase elasticity
Higher prices and lower quantities
elasticity of demand
Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price, and the sign is ignored (absolute value).
Slope of demand curve means
equal the change in price over the change in quantity.
