Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. This mind map introduces Elasticity.

Elasticity - Mind Map

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

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• Price Elasticity of Demand
  
  • Ped = % Change in Qd / % Change in P
  • If % Change Qd > % change P = Elastic
  • If % Change Qd < % Change P = Inelastic
  • If % Change Qd = % Change P = Unit Elasticity
• Cross Price Elasticity of Demand
  
  • Rleationship between changes in the price of one good and the demand for another related good
  • Substitutes - Positive relationship
  • Complements - Negative Relationship
• Determinants of Elasticity
  
  • Time Period
  • Luxury or Necessity
  • Proportion of Income
  • Number of substitutes
  • Addictive nature of good
• Income Elasticity of Demand
  
  • Normal Goods
    
    • Positive Relationship
    • Demand rises as incomes rise
  • Inferior Goods
    
    • Demand Falls as income rises
    • Inverse relationship
• Price Elasticity of Supply
  
  • Ease with which producers can respond to price changes
  • Pes = % Change in QS / % Change in P
  • If % Change in QS > % Change in P = Elastic
  • If % Change in QS < % Change in P = Inelastic