Principles of Microeconomics / Unit 4 MIC 0307 short lesson, about 20 seconds
Elasticity Along a Straight-Line Demand Curve
Captions available
The idea
On a straight-line demand curve, demand is elastic in the upper half, unit elastic at the midpoint, and inelastic in the lower half.
In practice
Near the top, price is high and quantity small, so a fixed step is a small price percentage, a large quantity one.
Where people slip
Calling a whole straight demand curve elastic is an error; the question is where the market sits.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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