3 Major Steps to Finding Elasticity:
1. Find % change in Quantity Demanded (Qd)
    ~ example:  Qd goes from 1 to 3
        ~ amount of change / original number
            ~ 2 / 1  = 2 (move decimal 2 places to right) = 200% (Qd changed by 200%)

2. Find % change in Price (P)
    ~ example: P goes from $4 to $3
        ~ amount of change / original number
            ~ 1 / 4 = .25 (move decimal 2 places to right) = 25% (P changed by 25%)

3. Divide % change in Qd by the % change in P
    ~ example from above:  200 / 25 = 8
    ~ the elasticity of this product is 8, which means that it is very elastic
    ~ a 25% change in price caused a 200% change in quantity demanded!

Using Point A as the original set, find the elasticity of demand for each product.  Decide whether each is elastic or inelastic.
 

	PRICE	QUANTITY DEMANDED
A B	$1.50 $2.00	16 12

 

	PRICE	QUANTITY DEMANDED
A B	$17.00 $10.00	21 25

 

	PRICE	QUANTITY DEMANDED
A B	$20.00 $13.00	19 38

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