Ch.+4+notes&hw

Notes 4.3 Questions #1-4 1. Elasticity demand in my words would be whether someone would buy something right away or hesitate and wait for the decrease in price. 2. Something that is elastic or sensitive to change would be a pencil price increase. When we go to the library to buy an extra pencil they typically cost twenty five cents but if they were to increase to a dollar no one would buy them. 3. A home heating fuel would be inelastic in cold whether because people don’t mind spending more money in order to be warm and it is more beneficial to pay then to get sick. 4. Total revenue is calculated by, using the amount of money a firm receives by selling goods and services.

Chapter 4 Review: On Paper