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Elasticity
1. Elasticity http://www.drawpack.com your visual business knowledge business diagram, management model, business graphic, powerpoint templates, business slide, download, free, business presentation, business design, business template Demand is elastic and expenditure increases when price falls from P1 to P2 (-) (+) Price P 1 P 2 0 Quantity Demand is inelastic and expenditure increases when price falls from P1 to P2 (+) (-) Price P 2 P 1 0 Quantity e = 0 Quantity Price e = 0 e = - ∞ (total inelastic demand) (total elastic demand) Quantity Price e = - ∞ e < - 1 e = - 1 e > - 1