What is the elasticity formula referred to as?
If the elasticity result >1, then the demand is __________ (flat, cannot increase price with
If the elasticity result <1, then the demand is _______ (steep, can increase price with this)
If the elasticity result =1, then its _______ (Ex: if raise Class
price by 20% and lose 20% of students then this occurs)
Price elasticity of demand or aka "simple formula"
Price elasticity of demand = % change in quant demanded / % change in price
- Unitary Elastic