Pin It. View Slideshow Â»Â». Fun in the sun! Celebrity trainer Jillian Michaels and her partner Heidi Rhoades hit the beach with their two children â daughter Lukensia, 3, and 18-month-old son Phoenix â in Miami, Florida on Tuesday (November 12).
Elasticity is the ratio of the % change in quantity to the % change in price. So if the two are identical, than it is said to be unitary elastic. If quantity changes more than price, then it is said to be elastic. If the quantity changes less than price, then it is said to be inelastic.
Perhaps the simplest way to tell whether demand is elastic, unitary elastic or inelastic is to observe the response of total revenue as the price of a product changes (Layton, et al., 2005). The diagrams below show different demand curves of price elasticity and the effect on a change in the market price.