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.