Elasticity tells us HOW MUCH one
variable changes in response to a change in another
variable. It is different than demand and
supply.
Demand - Lesson 3a:
If price increases what happens to the quantity
demanded?
Supply - Lesson 3b:
If price increases what happens to the quantity
supplied?
Price elasticity of demand -
Lesson 4a:
If price increases HOW MUCH does the quantity demanded
decrease?
Price elasticity of supply -
Lesson 4b:
If price increases HOW MUCH does the quantity supplied
increase?
We will study four different types of
elasticity:
1. price elasticity of
demand (lesson 4a)
(If price changes, HOW MUCH does quantity demanded
change?)
2. price elasticity of supply
(lesson 4b)
(If price changes, how HOW MUCH does quantity supplied
change?)
3. cross elasticity of demand
(lesson 4b)
(If the price of one product changes, HOW MUCH does the
quantity of another product change?)
4. income elasticity of demand
(lesson 4b)
(If income changes, HOW MUCH does the quantity of a
product purchased change?)
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