ELASTICITY

Demand and Supply

1. We have used demand and supply to PREDICT how

PRICE and QUANTITY change.

2. We know that if the price of bangus or milkfish

goes up, the demand for it will fall.

3. But HOW MUCH?

To answer HOW MUCH?

Economists use ELASTICITIES.

To answer HOW MUCH?

Economists use ELASTICITIES.

SEATWORK
Price Elasticity of Demand for Movie Tickets

Total Price Elasticity Total Total

Quantity of Per Ticket Coefficient Revenue Revenue Test
Movie (Determine
Tickets the Type of
Demanded Elasticity)
per Week
1 8
2 7
3 6
4 5
5 4
6 3
7 2
8 1
THANKS!
Any questions?