1.55Elasticity and Its Applications 2. Elasticity . . . • … allows us to analyze supply and demand with greater precision. • … is a measure of how much buyers and…

Slide 1 Our Friend Elasticity Or, how I learned to love percentages Slide 2 Measuring Responsiveness or Sensitivity Slope –Unit dependent Currency Quantities –No Starting…

Slide 1 © 2010 Pearson Addison-Wesley Slide 2 Total Revenue and Elasticity The total revenue is the amount paid by buyers and received by sellers of a good. It is computed…

Slide 1 Slide 2 1 Elasticity and its Application Chapter 5 Slide 3 2 Price Elasticity Sensitivity of quantity demanded (or supplied) to a change in price. Slide 4 3 Computing…

Slide 1 Slide 2 1 Further Topics in Supply and Demand Chapters 5 & 7 Slide 3 Price Elasticity of Demand Percent change in quantity demanded divided by percent change…

Slide 1 Copyright © 2006 Thomson Learning 5 Elasticity and Its Applications Slide 2 Figure 1 The Price Elasticity of Demand Copyright©2003 Southwestern/Thomson Learning…