1. What is the formula for calculating price elasticity of demand?

2. How do you interpret an elasticity coefficient greater than 1 versus less than 1?

3. Why do economists report elasticity values as positive numbers even when price and quantity move in opposite directions?

1. How should a business use elasticity information when deciding whether to raise or lower prices?

2. Why might a dairy farmer be unable to raise milk prices significantly despite inelastic demand?

1. How does whether a product is perceived as essential versus a luxury affect its price elasticity?

1. How does the availability of close substitutes affect the price elasticity of demand for a product?

1. Why does the proportion of income spent on a good influence its price elasticity?

1. How did the oil price increases of the 1970s demonstrate the relationship between time and elasticity?

1. What does it mean for demand to be elastic and what is the elasticity coefficient range?

1. What does it mean for demand to be inelastic and what is the elasticity coefficient range?

1. What is perfectly elastic demand and what happens to quantity demanded when price changes?

1. What is perfectly inelastic demand and how would it appear on a demand curve?

1. What is unit elastic demand and what is the relationship between price and quantity changes?

1. What is the price effect and how does it influence total revenue when price increases?

2. What is the quantity effect and how does it influence total revenue when price increases?

3. How do price effect and quantity effect determine whether total revenue increases or decreases with a price change?

4. How does elasticity type affect total revenue when prices increase?

1. How would a Broadway touring company use price elasticity to maximize revenue based on critical reviews?