1. Elasticity

13. Total revenue and elasticity (Qd X = 80 – 2Px) Price of Software (P x ) Quantity of Software Sold (Q x ) Own Price Elasticity (E QxPx ) Total Revenue (P X Q X ) A 0 80 0.00 0 B 5 70 -0.14 350 C 10 60 -0.33 600 D 15 50 -0.60 750 E 20 40 -1.00 800 F 25 30 -1.66 750 G 30 20 -3.00 600 H 35 10 -7.00 350 I 40 0 -  0

15. Demand, elasticity and total revenue

16. Q TR 0 TR Q A E = -  P O -  > E > -1 E = -1 -1 > E > 0 E = 0 -A / B A / 2

29. Income elasticity of demand, selected commodities, global Good Elasticity Good Elasticity Grain(China) -0.12 to 0.15 Cream (US) 1.72 Potatoes(UK) -0.32 Eggs (UK) -0.21 Potatoes(US) 0.15 Eggs (US) 0.57 Oranges (US) 0.83 Break (UK) -0.17 Apples (US) 1.32 Other cereal products (UK) 0.18 Lettuce (US) 0.88 Domestic cars (US) 1.62 Meat (China) 0.1 to1.2 European cars (US) 1.93 Milk (UK) 0.05 Asian cars (US) 1.65 Milk (US) 0.50

31. NSSO Survey 2011 ToI 25 July 2011 1999-2009 Rural Urban Food 70% 78% Education 378% 345% Overall expenditure 8% 20% Medical care 152% 136%

33. Trade elasticities in India 1960-91 Country Foreign Ey for India’s Exports India’s Ey for imports Exy for India’s exports Exy for India’s imports ROW 0.49 1.02 -0.94 -0.26 Australia 0.53 1.21 - -0.11 Belgium 1.53 3.91 - -0.83 Canada 0.18 0.43 -0.34 -0.37 France 1.76 2.08 - - Germany 1.42 1.08 -0.18 -1.01

34. Trade elasticities in India 1960-91 cont. Country Foreign Ey for India’s Exports India’s Ey for imports Exy for India’s exports Exy for India’s imports Italy 0.76 1.70 -1.78 -0.53 Japan 0.49 2.00 -0.05 -1.88 Netherlands 1.24 1.35 -0.28 -0.64 Switzerland 1.52 2.32 - -0.01 UK 0.55 1.68 -0.09 -1.79 USA 1.13 0.39 - -0.46

35. Reference - Gupta G S and Keshava H, 1994, Income and Price Elasticities in India’s Trade, Vikalpa , Vol. 19, No. 2, pp 13-19.

36. Why advertise?

42. Unit elastic supply curve 6 5 4 3 1 2 0 1 2 3 4 5 6 b c S 1 a f S 2 S 3 e d g P Q