Lesson 6
Lesson 6
Lesson 6
Supply and
Demand
Ojectives:
• Define Elasticity
• Identify the different kinds of elasticity
• Explain and cite examples of the different
types of elasticity.
OTHER CONCEPTS OF
ELASTICITY
<1---Inelastic
=1---Unitary
>1---Elastic
To derive the price elasticity of
demand, we use the formula: