Change in price absolute value of 0 perfectly elastic

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change in price - Absolute value of 0 PERFECTLY ELASTIC DEMAND- demand in which quantity drops to zero at the slightest increase in price, the elasticity of perfectly elastic demand is infinite
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CALCULATING PERCENTAGE CHANGES INITIAL VALUE METHOD - Q2-Q1/Q1 * 100 = - P2-P1/P1 * 100 = - QD% / P% MIDPOINT VALUE METHOD - Q1+Q2/2 * 100 - Q2-Q1/ midpoint * 100 TOTAL REVENUE AND ELASTICITY - TOTAL REVENUE is the total amount of funds received by a seller of a good or service - TOTAL REVENUE = price x quantity - Effects of price changes on quantity demanded ELASTIC DEMAND - PRICE GOES UP THEN QD GOES DOWN - PRICE GOES DOWN THEN QD GOES UP - REVENUE FOLLOWS Q2 INELASTIC DEMAND - PRICE GOES UP THEN Q2 GOES DOWN. BUT PRICE IS STILL LARGER - PRICE GOES DOWN THEN Q2 GOES UP, PRICE IS STILL LARGER - REVENUE FOLLOWS PRICE
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UNITARY ELASTIC - IF PRICE GOES DOWN AND Q2 GOES UP SAME AMOUNT - PRICE GOES UP AND Q2 GOES DOWN SAME AMOUNT - REVENUE STAYS THE SAME, 0 ELASTICITY DETERMINATION - SUBSTITUTES AVAILABILITY - THE MORE SUBS = ELASTIC - FEWER SUBS = INELASTIC TIME PERIOD SINCE PRICE CHANGE -
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