Unit 2: Elasticity, Consumer Choice, Costs

Lesson 4a: Price Elasticity of Demand and Tax Incidence

Key Graphs

Price Elasticity of Demand Total Revenue and Price Elasticity of Demand If the price decreases from $80 to $70 and Total Revenue increases from $2400 to $2800, then demand is price elastic. Perfectly Elastic and Inelastic Demand

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