Unit 3: Elasticity


What’s in This Chapter? In Unit 2, we learned that if the price of a product increases, the amount demanded decreases. But how much does it decrease? The “how much” describes the concept of price elasticity of...

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Section 1: Demand Curves and Elasticity

Price Elasticity of Demand Price elasticity of demand measures the responsiveness of buyers to a price change. If the price of gasoline increases by 10%, how will this affect the amount of gasoline purchased? Will the amount...

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Section 4: Elasticity and Total Revenue

Definition of Elastic, Inelastic, and Unit Elastic Demand  By definition: 1. A product is elastic when its elasticity is greater than 1. When a product is elastic and its price changes, the percentage change in quantity demanded...

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Test Your Knowledge!

  Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well! You have already...

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