Price Elasticity of Demand & Supply

What this note covers

1. Elasticity: measuring responsiveness, not direction
2. The four factors that determine PED
3. PES: how quickly can producers respond?
4. Worked application: a drought hits the lettuce market
5. Interpreting elasticity as a business
6. Interpreting elasticity as a government

6 sections · 14 key terms & formulas · 6 common mistakes