Elasticity and Its Applications
What elasticity means — how much quantity responds to a price change
Demand elasticity — elastic vs inelastic, and what makes demand more elastic
How to calculate it — midpoint method in plain English
The five curve shapes — perfectly inelastic → perfectly elastic (and what each is good for)
Elasticity & total revenue — when a price rise helps or hurts revenue
Supply elasticity — short run vs long run
Three classic applications — farming technology, OPEC oil, drug policy
China & business uses — food prices, energy, e-commerce pricing
Quick quiz — check understanding with hints
Elasticity = Supply or Demand is Moveable (able to move). Firms want to find the perfect price that sells well and keeps their supply maintained, without shortages