1. Chapter 5: Elasticity

2. Elasticity A general concept used to quantify the response in one variable when another variable changes

3. Price Elasticity of Demand

4. Price Elasticity of Demand (cont.) Types of Elasticity i. perfectly inelastic demand ii. inelastic demand iii. unitary elasticity iv. elastic demand v. perfectly elastic demand

5. Price Elasticity of Demand (cont.)

7. Calculating Elasticities

8. Calculating Elasticities (cont.)

14. The Determinants of Demand Elasticity i. Availability of Substitutes ii. The Importance of Being Unimportant iii. The Time Dimension

15. Other Important Elasticities

16. Other Important Elasticities (cont.)