AS Revision: Elasticity

With the essay and data response paper on Monday it might be appropriate to go through elasticity. You should know the following for PED, YED, CPED, and PES:

1. Characteristics
2. Equation for calculation
3. Values – what do they mean?
4. Graphs
5. Usefulness to businesses

This topic comes up in a variety of guises:
– Indirect taxes and subsidies
– Market failure
– Trade – J curve
– Macroeconomy

Here is a reminder of some of the main points for PED:

Also a key graph for Income Elasticity of Demand.

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