Index
Elasticity - 1
Elasticity - 2
Elasticity - 3
The Total Outlays Method - 4
Total Outlays - 5
Total Outlays - 6
Total Outlays - 7
Revenue Loss - Revenue Gain - 8
Revenue Loss - Revenue Gain - 9
Inelastic Demand - 10
Inelastic Demand - 11
Elastic Demand - 12
Summary and Solutions - 13
Perfectly Elastic Demand - 14
Perfectly Inelastic Demand - 15
Arc Elasticity of Demand - 16
Calculating Elasticity of Demand - 17
Calculating Elasticity of Demand - 18
Calculating Elasticity of Demand - 19
Factors Effecting Elasticity of Demand- 20
Normal and Inferior Goods - 21
Factors Effecting Elasticity of Supply - 22
Factors Effecting Elasticity of Supply - 23
Factors Effecting Elasticity of Supply - 24
Inelastic Supply - 25
Perfectly Inelastic Supply - 26
Elastic Supply - 27
Factors Effecting Elasticity of Supply - 28
Factors Effecting Elasticity of Supply - 29
Factors Effecting Elasticity of Supply - 30
Cross Elasticity of Demand - 31
Income Elasticity of Demand - 32
Income Inelastic Goods - 33
Income Elasticity - 34
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Elastic Demand - 12

If a given change in price causes a larger proportionate change in quantity demanded, then the demand for the good or service is said to be elastic.

In the diagram to your left, the price of Moo iced coffee drink has risen from $1.50 to $1.70 per 500 ml container. Sales at your local corner store of ''Moo'' fall from 500 containers per week to 300 containers per week.

Calculate the percentage increase in price, and the percentage decrease in quantity sold. Calculate the price elasticity of ''Moo''.