text: Econ Chap 5
  
  # Econ Chap 5 - Midpoint= unit elastic %ChangeQuantity/ %...
  
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  Elasticity Measure of responsiveness Price elasticity—measure how responsible quantity demanded is to a change in price The percentage change in quantity demanded divided by the percentage change in price Let p= intial price P1= new price Q= intial quantitry Q1= new quantity Change in q= q-q1 Change in p= p-p1 Graph--- Change in Q= 95-105 …10,000/(95+105)/2 = If %Change Q < % Change P Inelastic demand is between 0 and 1 > Elastic demand is greater than 1 Unit elastic is = 1 As p decreases--- If demand is elastic …total revenue increases IF deman is inelastic….total revenue decreases If demand is unit eleastic… TR is constant Linear D Constant slope Different elasticity along the curve D becomes less elastic as we move down D upper: elastic D lower: Inelastic
  
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  Unformatted text preview: Midpoint= unit elastic %ChangeQuantity/ % ChangePrice = Elastic demand %ChangeQ= ChangeQ (100)---------= 100/150 = 67% (q+q1)/2 (200+100)/2 %ChangeP= ChangeP (-10)---------= -10/85 = 12 % (P+P1)/2 (80+90)/2 ED= 67%/12% = -5.6 = 5.6 > 1 SO ELASTIC Perfectly elastic D curve Horizontal; ED= 00 (infinity) Consumers do not tolerate an increase in P Perfectly Vertical; ED= 0 Price is no object Unit %Change Price causes exact opposite %Change Q Because %Change are off setting total revenue remains constant for every price quantity combo ED is greater: 1) the greater the availability of substitutes and the more similar the substitutes 2) The more important the good is as a share of the consumer’s budget 3) The longer the period of adjustment...
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  ## This note was uploaded on 10/05/2011 for the course ECON 2005 at Virginia Tech.
  
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explanation: The text extract appears to be a set of notes on the topic of elasticity in economics, specifically from Chapter 5. It covers definitions, formulas, and concepts related to price elasticity of demand, including inelastic, elastic, and unit elastic demand. The extract includes an example calculation of price elasticity of demand and discusses the impact of elasticity on total revenue. It also mentions the characteristics that influence the elasticity of a good.
  
  The text does not contain a specific question or a question and answer pair. It is primarily a set of notes or a summary of concepts.
distilabel_metadata.content: Evaluate the user given text extract and determine if it contains a math question and optionally and answer to this question.
  
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  1. Briefly describe the document and mention if it contains a question or a question and answer.
  2. Finalize the output with: Label: no-question,question,question-and-answer,multiple-question,multiple-question-and-answer
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distilabel_metadata.content: Econ Chap 5
  
  # Econ Chap 5 - Midpoint= unit elastic %ChangeQuantity/ %...
  
  This preview shows pages 1–2. Sign up to view the full content.
  
  Elasticity Measure of responsiveness Price elasticity—measure how responsible quantity demanded is to a change in price The percentage change in quantity demanded divided by the percentage change in price Let p= intial price P1= new price Q= intial quantitry Q1= new quantity Change in q= q-q1 Change in p= p-p1 Graph--- Change in Q= 95-105 …10,000/(95+105)/2 = If %Change Q < % Change P Inelastic demand is between 0 and 1 > Elastic demand is greater than 1 Unit elastic is = 1 As p decreases--- If demand is elastic …total revenue increases IF deman is inelastic….total revenue decreases If demand is unit eleastic… TR is constant Linear D Constant slope Different elasticity along the curve D becomes less elastic as we move down D upper: elastic D lower: Inelastic
  
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  Unformatted text preview: Midpoint= unit elastic %ChangeQuantity/ % ChangePrice = Elastic demand %ChangeQ= ChangeQ (100)---------= 100/150 = 67% (q+q1)/2 (200+100)/2 %ChangeP= ChangeP (-10)---------= -10/85 = 12 % (P+P1)/2 (80+90)/2 ED= 67%/12% = -5.6 = 5.6 > 1 SO ELASTIC Perfectly elastic D curve Horizontal; ED= 00 (infinity) Consumers do not tolerate an increase in P Perfectly Vertical; ED= 0 Price is no object Unit %Change Price causes exact opposite %Change Q Because %Change are off setting total revenue remains constant for every price quantity combo ED is greater: 1) the greater the availability of substitutes and the more similar the substitutes 2) The more important the good is as a share of the consumer’s budget 3) The longer the period of adjustment...
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  ## This note was uploaded on 10/05/2011 for the course ECON 2005 at Virginia Tech.
  
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  Econ Chap 5 - Midpoint= unit elastic %ChangeQuantity/ %...
  
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distilabel_metadata.role: user
distilabel_metadata.raw_output_q_a_detector_0: The text extract appears to be a set of notes on the topic of elasticity in economics, specifically from Chapter 5. It covers definitions, formulas, and concepts related to price elasticity of demand, including inelastic, elastic, and unit elastic demand. The extract includes an example calculation of price elasticity of demand and discusses the impact of elasticity on total revenue. It also mentions the characteristics that influence the elasticity of a good.
  
  The text does not contain a specific question or a question and answer pair. It is primarily a set of notes or a summary of concepts.
  
  Label: no-question