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Elasticity - Coggle Diagram

- - - - [(New Qd - original Qd) / (New Qd + original Qd)/2] x 100
    - - [(New price - original price) / (New price + original price)/2] x 100
  - - - When Ed > 1
    - - When Ed = 1
    - - When Ed < 1
  - - - Hard to find
        
        Inelastic
      - The longer the time elapsed since price change
        
        = more elastic demand
      - Readily available
        
        Elastic
      - How good is defined
        
        Narrow
        
        Elastic demand
        
        Broad
        
        Inelastic demand
    - - The greater the %, the more elastic
  - - - a given % rise in Price
        
        creates a larger % decline in Qd
        
        total revenue decreases
      - Price & TR change in opposite direction
    - - a given % rise in Price
        
        total revenue increases
        
        creates a smaller % decline in Qd
      - Price & TR change in same direction
    - - when Price change doesn't change TR
- - - - [(New Qs - original Qs) / (New Qs + original Qs) / 2 x 100
    - - [(New Price - original Price) / (New Price + original Price) / 2 x 100
  - - - % change in Qs = % change in Price
      - Es = 1
    - - % change in Qs < % change in Price
      - Es < 1
    - - % change in Qs > % change in Price
      - Es > 1
  - - - Elastic
        
        goods produced with constant opportunity cost
      - Inelastic
        
        goods produced in fixed quantity
    - - Elastic
        
        storable goods
        
        cost of storage in the MAIN influence on supply of strorable good
      - Inelastic
        
        non-storable goods
- - - - a fall in Price of substitute causes a decreases in Qd
      - Qd of good & price of substitute change in same direction
  - - - a fall in the price of a complement causes an increase in Qd of the good
      - Qd of good & price of substitute change in opposite directions