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Unformatted text preview: demanded that results from a 1 percent change in its price. Chapter 4: Elasticity Slide 5 Price Elasticity of Demand Measuring Price Elasticity of Demand Observations z Price elasticity of demand will always be negative (inverse relationship between price and quantity). z For convenience we drop the negative sign. Price in Change Percentage Demanded Quantity in Change Percentage Chapter 4: Elasticity Slide 6 Price Elasticity of Demand Measuring Price Elasticity of Demand When is > 1: elastic < 1: inelastic = 1: unit elastic Price in Change Percentage Demanded Quantity in Change Percentage...
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 Spring '08
 BRIGHTWELL
 Price Elasticity

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