Economics · Micro
Elasticity
How strongly quantity responds to price. Elasticity tells you whether a price hike raises revenue, who really pays a tax, and why some companies have pricing power.
Step 1 of 7 · Overview25 min read ·
Key idea
Prereqs: Supply & demand. Next: Comparative advantage & trade. Marginal Revolution University 'Elasticity of Demand'; MIT 14.01.Next: 1. Definition