This document discusses key concepts related to demand and supply, including: 1) Demand and supply schedules show the relationship between price and quantity at different price levels. Demand and supply curves graph this relationship. 2) A change in a non-price factor like income causes a shift of the demand or supply curve, while a price change results in movement along the curve. 3) Equilibrium occurs where quantity demanded equals quantity supplied. Price controls can result in surpluses or shortages from the equilibrium. 4) Elasticity measures the responsiveness of one variable to changes in another. It is used to analyze how changes in price or other factors affect revenue and consumer behavior.

19. Equilibrium in a Market Demand Price Supply 800 $3,000 2,900 1,150 $2,500 2,550 1,500 $2,000 2,200 1,850 $1,500 1,850 2,200 $1,000 1,500 2,550 $500 1,150 2,900 $0 0

28. Elasticity and slope Price Quantity Demanded The demand curve can be a range of shapes each of which is associated with a different relationship between price and the quantity demanded.

30. Elasticity and slope

36. Income elasticity of demand

41. price revenue elasticity Increases increases E< 1 increases decreases E>1 decreases decreases E<1 decreases increases E>1 Increases/ decreases constant E=1

44. Total revenue qty E = 1 Tr is max