1/30 - lands on the yawning it acts elastically If...

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1/30/08 How sensitive a change in quantity is to a change in price The amount that people want to buy is non-zero If the price of both goods is raised by the same amount Elastic- demand is more sensitive to a change in price Inelastic- demand is less sensitive to a change in price Two ways to keep them straight Inelastic starts with “I” which mostly extends up and down Elastic starts with “E” where the base extends horizontal O’Gorman Way Economics teacher flies out the window, and because there is more distance, when he
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Unformatted text preview: lands on the yawning, it acts elastically. If inelastic, he fall straight through. Elasticity tells us what will happen to total revenue. Total Revenue= Price * Quantity (P*Q) If the demand curve is inelastic and there is an increase in price, then total revenue will increase. Memory trick If you have an In elastic demand curve And you have and In crease in price, Then you will have an I n crease in TR....
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This note was uploaded on 04/18/2008 for the course ECO 2023 taught by Professor O'gorman during the Spring '08 term at South Florida Community College.

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