What is price elasticity of demand?
The midpoint method
Worked example
Classifying elasticity
Perfectly inelastic (vertical), perfectly elastic (horizontal), and unit elastic reference
Elasticity along a linear demand curve
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Elasticity varies along a linear demand curve
Determinants of elasticity
Examples
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Elasticity and total revenue
Why?
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Memory trick
Graphing total revenue
TR is maximized where demand is unit elastic
AP exam tips for 2.3
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Common mistakes
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Key equations
Vocabulary
Unit 2 topics
Unit 2 overview2.1Changes in Demand2.10Tax Incidence and Deadweight Loss2.11Price Controls: Ceilings and Floors2.12International Trade and Public Policy2.2Changes in Supply2.3Price Elasticity of Demand2.4Price Elasticity of Supply2.5Cross-Price Elasticity of Demand2.6Income Elasticity of Demand2.7Consumer Surplus2.8Producer Surplus2.9Market Equilibrium and Efficiency