{"id":8803,"date":"2018-05-29T20:00:22","date_gmt":"2018-05-29T20:00:22","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/calculating-elasticity-and-percentage-changes\/"},"modified":"2024-04-25T21:36:53","modified_gmt":"2024-04-25T21:36:53","slug":"calculating-elasticity-and-percentage-changes","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/calculating-elasticity-and-percentage-changes\/","title":{"raw":"Calculating Elasticity and Percentage Changes","rendered":"Calculating Elasticity and Percentage Changes"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\n<ul>\r\n \t<li>Mathematically differentiate between elastic, inelastic, and unitary elasticities of demand<\/li>\r\n \t<li>Calculate percentage changes, or growth rates<\/li>\r\n \t<li>Differentiate between the midpoint elasticity approach and the point elasticity approach in calculating elasticity<\/li>\r\n<\/ul>\r\n<\/div>\r\n<h2>Calculating Elasticity<\/h2>\r\nThe formula for calculating elasticity is:\r\n<p style=\"text-align: center;\">[latex]\\displaystyle\\text{Price Elasticity of Demand}=\\frac{\\text{percent change in quantity}}{\\text{percent change in price}}[\/latex].<\/p>\r\nLet's look at the practical example mentioned earlier about cigarettes. Certain groups\u00a0of cigarette smokers, such as teenage, minority, low-income, and casual smokers, are somewhat\u00a0sensitive to changes in price: for every 10\u00a0percent increase in the price of a pack of cigarettes, the\u00a0smoking rates drop about 7\u00a0percent.\u00a0Plugging those numbers into the formula, we get\r\n<p style=\"text-align: center;\">[latex]\\displaystyle\\text{Price Elasticity of Demand}=\\frac{\\text{percent change in quantity}}{\\text{percent change in price}}=\\frac{-7\\%}{10\\%}=-0.7[\/latex]<\/p>\r\n\r\n<div class=\"textbox tryit\">\r\n<h3>Try It<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/61bd0dd9-dff3-4c97-89b3-79ff12d67b6c\r\n\r\n<\/div>\r\n<h2>Inelastic, Elastic, and Unitary Demand<\/h2>\r\nSo what does the number -0.7 tell us about the elasticity of demand? The negative sign reflects the law of demand: at a higher price, the quantity demanded for\u00a0cigarettes declines.\u00a0All price elasticities of demand have a negative sign, so it's easiest to think about elasticity in absolute value, ignoring the negative sign. The fact that the result is less than one is more important than the negative sign. It tells us that the size of the quantity change is less than the size of the price change (i.e. the numerator in the elasticity formula is less than the denominator). This tells us that it would take a relatively large price change in order to cause a relatively small change in quantity demanded. In other words, consumer responsiveness to a change in price is relatively small.\u00a0Therefore, when the elasticity is less than 1, we say\u00a0that demand is <strong>inelastic<\/strong>.\r\n\r\nThe data above indicate\u00a0that the demand for cigarettes by teenagers, minority, low income and casual smokers\u00a0is relatively inelastic. Addicted adult smokers, though, are even less sensitive to changes in the\u00a0price\u2014most are willing to pay whatever it takes to support their smoking habit.\u00a0We can say that their demand is even more inelastic than low income or casual smokers.\r\n\r\nDifferent products have different price elasticities of demand.\u00a0If the absolute value of the elasticity of some product\u00a0is greater than one, it means that the change in the quantity demanded is greater than the change in price. This indicates a larger reaction to price change, which we describe as <strong>elastic<\/strong>. If the\u00a0elasticity is equal to one, it means that the change in the quantity demanded is exactly\u00a0equal to the change in price, so the demand response is exactly proportional to the change in price. We call this\u00a0<strong>unitary elasticity,<\/strong>\u00a0because unitary means one. <span class=\"annotator-hl\">\u00a0<\/span>\r\n<div class=\"textbox examples\">\r\n<h3>Watch It<\/h3>\r\nWatch this video carefully to understand how to solve for elasticity and to see what the numerical values for elasticity mean when applied to economic situations.\r\n\r\n<iframe src=\"https:\/\/www.youtube.com\/embed\/4oj_lnj6pXA?rel=0\" width=\"800\" height=\"470\" frameborder=\"0\"><\/iframe>\r\n\r\nYou can view the\u00a0<a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/Macroeconomics\/Transcriptions\/Episode16ElasticityOfDemand_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \u201cEpisode 16: Elasticity of Demand\u201d here (opens in new window)<\/a>.\r\n\r\n<\/div>\r\n<div class=\"textbox tryit\">\r\n<h3>Try It<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/d2214274-a451-49af-8b00-39bbff184ba7\r\n\r\nhttps:\/\/assess.lumenlearning.com\/practice\/0f47c0be-8717-45a1-8507-0d459ff2c36d\r\n\r\n<\/div>\r\n<h2>Calculating Percentage Changes and Growth Rates<\/h2>\r\nBefore we dive deeper into solving for elasticity, let's first make sure we are comfortable calculating percentage changes, also known as a <strong>growth<\/strong> <strong>rates<\/strong>.\u00a0The formula for computing a growth rate is straightforward:\r\n<p style=\"text-align: center;\">[latex]\\text{Percentage change}=\\frac{\\text{Change in quantity}}{\\text{Quantity}}[\/latex]<\/p>\r\nSuppose that a\u00a0job pays $10 per hour. At some point, the individual doing the job is\u00a0given\u00a0a $2-per-hour raise. The percentage change (or growth rate) in pay is\r\n<p style=\"text-align: center;\">[latex]\\frac{\\$2}{\\$10}=0.20\\text{ or }20\\%[\/latex].<\/p>\r\nNow to solve for elasticity, we use the growth rate, or percentage change, of the quantity demanded as well as the percentage change in price in order to to examine how these two variables are related. The price elasticity of demand\u00a0is the ratio between the percentage change in the quantity demanded (Qd) and the corresponding percent change in price:\r\n<p style=\"text-align: center;\">[latex]\\text{Price elasticity of demand}=\\frac{\\text{Percentage change in quantity demanded}}{\\text{Percentage change in price}}[\/latex]<\/p>\r\nThere are two general methods\u00a0for calculating elasticities: the <strong>point elasticity approach<\/strong> and the <strong>midpoint (or arc) elasticity approach<\/strong>. Elasticity looks at the percentage change in quantity demanded divided by the percentage change in price, but <em>which<\/em> quantity and <em>which<\/em> price should be the denominator in the percentage calculation? The point approach uses the initial price and initial quantity to measure percent change. This makes the math easier, but the more accurate approach is the midpoint approach, which uses the average price and average quantity over the price and quantity change. (These are the price and quantity halfway between the initial point and the final point.) Let\u2019s compare the two approaches. Suppose the quantity demanded of a product\u00a0was 100\u00a0at one point on the demand curve, and then it moved to\u00a0103 at another point. The growth rate, or percentage change in quantity demanded, would be the change in quantity demanded [latex]{(103-100)}[\/latex] divided by the average\u00a0of the two quantities demanded:\r\n<p style=\"text-align: center;\">[latex]\\frac{(103+100)}{2}[\/latex].<\/p>\r\nIn other words,\u00a0the growth rate:\r\n<p style=\"text-align: center;\">[latex]\\begin{array}{r}{\\frac{103-100}{(103+100)\/2}}\\\\{=\\frac{3}{101.5}}\\\\{=0.0296}\\\\{=2.96\\%\\text{ growth}}\\end{array}[\/latex]<\/p>\r\nNote that if we used the point approach, the calculation would be:\r\n<p style=\"text-align: center;\">[latex]\\frac{(103\u2013100)}{100}=3\\%\\text{ growth}[\/latex]<\/p>\r\nThis produces\u00a0nearly the same result as the slightly more complicated midpoint method (3% vs. 2.96%). If you need a rough approximation, use the point\u00a0method.\u00a0If you need accuracy, use the midpoint\u00a0method.\u00a0Note: as the two points become closer together, the point elasticity becomes a closer approximation to the arc elasticity.\r\n\r\nIn this module you will often be asked to calculate the <em>percentage change<\/em> in the quantity. Keep in mind that this is same as the\u00a0the growth rate of the quantity. As you work\u00a0through the course and find other applications for calculate growth rates, you will be well prepared.\r\n<div class=\"textbox tryit\">\r\n<h3>Try It<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/568a5f38-22a3-49dc-94bf-c40eeda59321\r\n\r\nhttps:\/\/assess.lumenlearning.com\/practice\/e1465c4c-e190-4b53-9ca5-3b9b11604199\r\n\r\n<\/div>\r\n<div class=\"textbox tryit\">\r\n<h3>Try It<\/h3>\r\nThese next questions allow you to get as much practice as you need, as you can click the link at the top of the questions (\u201cTry another version of these questions\u201d) to get a new version of the questions. Practice until you feel comfortable with this concept.\r\n[ohm_question height=\"500\"]276169[\/ohm_question]\r\n\r\n<\/div>\r\n<div class=\"textbox learning-objectives\">\r\n<h3>Glossary<\/h3>\r\n[glossary-page][glossary-term]elastic demand:[\/glossary-term]\r\n[glossary-definition]when the calculated\u00a0elasticity of demand is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price[\/glossary-definition]\r\n[glossary-term]elastic supply:[\/glossary-term][glossary-definition]when the calculated\u00a0elasticity of either supply is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price [\/glossary-definition]\r\n[glossary-term]inelastic demand: [\/glossary-term][glossary-definition]when the calculated\u00a0elasticity of demand is less than one, indicating that a 1 percent increase in price paid by the consumer leads to less than a 1 percent change in purchases (and vice versa); this indicates a low responsiveness by consumers to price changes [\/glossary-definition][glossary-term]inelastic supply: [\/glossary-term]\r\n[glossary-definition]when the calculated\u00a0elasticity of supply is less than one, indicating that a 1 percent increase in price paid to the firm will result in a less than 1 percent increase in production by the firm; this indicates a low responsiveness of the firm to price increases (and vice versa if prices drop) [\/glossary-definition]\r\n[glossary-term]midpoint elasticity approach: [\/glossary-term][glossary-definition]Most accurate approach to solving for elasticity in which the percent changes in quantity demanded and price are measured relative to the average quantity demanded and price; the initial quantity demand is subtracted from the new quantity demanded; then divided by the average of the two quantities demanded; similarly, the initial price is subtracted from the new price, then divided by the average of the two prices \u00a0[\/glossary-definition]\r\n[glossary-term]point elasticity approach: [\/glossary-term][glossary-definition]approximate method for solving for elasticity in which the percent changes are measured relative to the initial quantity demanded and price;\u00a0 the initial quantity demanded is subtracted from the new quantity demanded, then divided by the initial quantity demanded; similarly, the initial price is subtracted from the new price, then divided by the initial price.\u00a0\u00a0[\/glossary-definition]\r\n[glossary-term]unitary elasticity: [\/glossary-term][glossary-definition]when the\u00a0calculated elasticity is equal to one indicating that a change in the price of the good or service results in a proportional change in the quantity demanded or supplied[\/glossary-definition][\/glossary-page]\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<ul>\n<li>Mathematically differentiate between elastic, inelastic, and unitary elasticities of demand<\/li>\n<li>Calculate percentage changes, or growth rates<\/li>\n<li>Differentiate between the midpoint elasticity approach and the point elasticity approach in calculating elasticity<\/li>\n<\/ul>\n<\/div>\n<h2>Calculating Elasticity<\/h2>\n<p>The formula for calculating elasticity is:<\/p>\n<p style=\"text-align: center;\">[latex]\\displaystyle\\text{Price Elasticity of Demand}=\\frac{\\text{percent change in quantity}}{\\text{percent change in price}}[\/latex].<\/p>\n<p>Let&#8217;s look at the practical example mentioned earlier about cigarettes. Certain groups\u00a0of cigarette smokers, such as teenage, minority, low-income, and casual smokers, are somewhat\u00a0sensitive to changes in price: for every 10\u00a0percent increase in the price of a pack of cigarettes, the\u00a0smoking rates drop about 7\u00a0percent.\u00a0Plugging those numbers into the formula, we get<\/p>\n<p style=\"text-align: center;\">[latex]\\displaystyle\\text{Price Elasticity of Demand}=\\frac{\\text{percent change in quantity}}{\\text{percent change in price}}=\\frac{-7\\%}{10\\%}=-0.7[\/latex]<\/p>\n<div class=\"textbox tryit\">\n<h3>Try It<\/h3>\n<p>\t<iframe id=\"assessment_practice_61bd0dd9-dff3-4c97-89b3-79ff12d67b6c\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/61bd0dd9-dff3-4c97-89b3-79ff12d67b6c?iframe_resize_id=assessment_practice_id_61bd0dd9-dff3-4c97-89b3-79ff12d67b6c\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<h2>Inelastic, Elastic, and Unitary Demand<\/h2>\n<p>So what does the number -0.7 tell us about the elasticity of demand? The negative sign reflects the law of demand: at a higher price, the quantity demanded for\u00a0cigarettes declines.\u00a0All price elasticities of demand have a negative sign, so it&#8217;s easiest to think about elasticity in absolute value, ignoring the negative sign. The fact that the result is less than one is more important than the negative sign. It tells us that the size of the quantity change is less than the size of the price change (i.e. the numerator in the elasticity formula is less than the denominator). This tells us that it would take a relatively large price change in order to cause a relatively small change in quantity demanded. In other words, consumer responsiveness to a change in price is relatively small.\u00a0Therefore, when the elasticity is less than 1, we say\u00a0that demand is <strong>inelastic<\/strong>.<\/p>\n<p>The data above indicate\u00a0that the demand for cigarettes by teenagers, minority, low income and casual smokers\u00a0is relatively inelastic. Addicted adult smokers, though, are even less sensitive to changes in the\u00a0price\u2014most are willing to pay whatever it takes to support their smoking habit.\u00a0We can say that their demand is even more inelastic than low income or casual smokers.<\/p>\n<p>Different products have different price elasticities of demand.\u00a0If the absolute value of the elasticity of some product\u00a0is greater than one, it means that the change in the quantity demanded is greater than the change in price. This indicates a larger reaction to price change, which we describe as <strong>elastic<\/strong>. If the\u00a0elasticity is equal to one, it means that the change in the quantity demanded is exactly\u00a0equal to the change in price, so the demand response is exactly proportional to the change in price. We call this\u00a0<strong>unitary elasticity,<\/strong>\u00a0because unitary means one. <span class=\"annotator-hl\">\u00a0<\/span><\/p>\n<div class=\"textbox examples\">\n<h3>Watch It<\/h3>\n<p>Watch this video carefully to understand how to solve for elasticity and to see what the numerical values for elasticity mean when applied to economic situations.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/4oj_lnj6pXA?rel=0\" width=\"800\" height=\"470\" frameborder=\"0\"><\/iframe><\/p>\n<p>You can view the\u00a0<a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/Macroeconomics\/Transcriptions\/Episode16ElasticityOfDemand_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \u201cEpisode 16: Elasticity of Demand\u201d here (opens in new window)<\/a>.<\/p>\n<\/div>\n<div class=\"textbox tryit\">\n<h3>Try It<\/h3>\n<p>\t<iframe id=\"assessment_practice_d2214274-a451-49af-8b00-39bbff184ba7\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/d2214274-a451-49af-8b00-39bbff184ba7?iframe_resize_id=assessment_practice_id_d2214274-a451-49af-8b00-39bbff184ba7\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<p>\t<iframe id=\"assessment_practice_0f47c0be-8717-45a1-8507-0d459ff2c36d\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/0f47c0be-8717-45a1-8507-0d459ff2c36d?iframe_resize_id=assessment_practice_id_0f47c0be-8717-45a1-8507-0d459ff2c36d\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<h2>Calculating Percentage Changes and Growth Rates<\/h2>\n<p>Before we dive deeper into solving for elasticity, let&#8217;s first make sure we are comfortable calculating percentage changes, also known as a <strong>growth<\/strong> <strong>rates<\/strong>.\u00a0The formula for computing a growth rate is straightforward:<\/p>\n<p style=\"text-align: center;\">[latex]\\text{Percentage change}=\\frac{\\text{Change in quantity}}{\\text{Quantity}}[\/latex]<\/p>\n<p>Suppose that a\u00a0job pays $10 per hour. At some point, the individual doing the job is\u00a0given\u00a0a $2-per-hour raise. The percentage change (or growth rate) in pay is<\/p>\n<p style=\"text-align: center;\">[latex]\\frac{\\$2}{\\$10}=0.20\\text{ or }20\\%[\/latex].<\/p>\n<p>Now to solve for elasticity, we use the growth rate, or percentage change, of the quantity demanded as well as the percentage change in price in order to to examine how these two variables are related. The price elasticity of demand\u00a0is the ratio between the percentage change in the quantity demanded (Qd) and the corresponding percent change in price:<\/p>\n<p style=\"text-align: center;\">[latex]\\text{Price elasticity of demand}=\\frac{\\text{Percentage change in quantity demanded}}{\\text{Percentage change in price}}[\/latex]<\/p>\n<p>There are two general methods\u00a0for calculating elasticities: the <strong>point elasticity approach<\/strong> and the <strong>midpoint (or arc) elasticity approach<\/strong>. Elasticity looks at the percentage change in quantity demanded divided by the percentage change in price, but <em>which<\/em> quantity and <em>which<\/em> price should be the denominator in the percentage calculation? The point approach uses the initial price and initial quantity to measure percent change. This makes the math easier, but the more accurate approach is the midpoint approach, which uses the average price and average quantity over the price and quantity change. (These are the price and quantity halfway between the initial point and the final point.) Let\u2019s compare the two approaches. Suppose the quantity demanded of a product\u00a0was 100\u00a0at one point on the demand curve, and then it moved to\u00a0103 at another point. The growth rate, or percentage change in quantity demanded, would be the change in quantity demanded [latex]{(103-100)}[\/latex] divided by the average\u00a0of the two quantities demanded:<\/p>\n<p style=\"text-align: center;\">[latex]\\frac{(103+100)}{2}[\/latex].<\/p>\n<p>In other words,\u00a0the growth rate:<\/p>\n<p style=\"text-align: center;\">[latex]\\begin{array}{r}{\\frac{103-100}{(103+100)\/2}}\\\\{=\\frac{3}{101.5}}\\\\{=0.0296}\\\\{=2.96\\%\\text{ growth}}\\end{array}[\/latex]<\/p>\n<p>Note that if we used the point approach, the calculation would be:<\/p>\n<p style=\"text-align: center;\">[latex]\\frac{(103\u2013100)}{100}=3\\%\\text{ growth}[\/latex]<\/p>\n<p>This produces\u00a0nearly the same result as the slightly more complicated midpoint method (3% vs. 2.96%). If you need a rough approximation, use the point\u00a0method.\u00a0If you need accuracy, use the midpoint\u00a0method.\u00a0Note: as the two points become closer together, the point elasticity becomes a closer approximation to the arc elasticity.<\/p>\n<p>In this module you will often be asked to calculate the <em>percentage change<\/em> in the quantity. Keep in mind that this is same as the\u00a0the growth rate of the quantity. As you work\u00a0through the course and find other applications for calculate growth rates, you will be well prepared.<\/p>\n<div class=\"textbox tryit\">\n<h3>Try It<\/h3>\n<p>\t<iframe id=\"assessment_practice_568a5f38-22a3-49dc-94bf-c40eeda59321\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/568a5f38-22a3-49dc-94bf-c40eeda59321?iframe_resize_id=assessment_practice_id_568a5f38-22a3-49dc-94bf-c40eeda59321\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<p>\t<iframe id=\"assessment_practice_e1465c4c-e190-4b53-9ca5-3b9b11604199\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/e1465c4c-e190-4b53-9ca5-3b9b11604199?iframe_resize_id=assessment_practice_id_e1465c4c-e190-4b53-9ca5-3b9b11604199\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<div class=\"textbox tryit\">\n<h3>Try It<\/h3>\n<p>These next questions allow you to get as much practice as you need, as you can click the link at the top of the questions (\u201cTry another version of these questions\u201d) to get a new version of the questions. Practice until you feel comfortable with this concept.<br \/>\n<iframe loading=\"lazy\" id=\"ohm276169\" class=\"resizable\" src=\"https:\/\/ohm.lumenlearning.com\/multiembedq.php?id=276169&theme=oea&iframe_resize_id=ohm276169&show_question_numbers\" width=\"100%\" height=\"500\"><\/iframe><\/p>\n<\/div>\n<div class=\"textbox learning-objectives\">\n<h3>Glossary<\/h3>\n<div class=\"titlepage\">\n<dl>\n<dt>elastic demand:<\/dt>\n<dd>when the calculated\u00a0elasticity of demand is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price<\/dd>\n<dt>elastic supply:<\/dt>\n<dd>when the calculated\u00a0elasticity of either supply is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price <\/dd>\n<dt>inelastic demand: <\/dt>\n<dd>when the calculated\u00a0elasticity of demand is less than one, indicating that a 1 percent increase in price paid by the consumer leads to less than a 1 percent change in purchases (and vice versa); this indicates a low responsiveness by consumers to price changes <\/dd>\n<dt>inelastic supply: <\/dt>\n<dd>when the calculated\u00a0elasticity of supply is less than one, indicating that a 1 percent increase in price paid to the firm will result in a less than 1 percent increase in production by the firm; this indicates a low responsiveness of the firm to price increases (and vice versa if prices drop) <\/dd>\n<dt>midpoint elasticity approach: <\/dt>\n<dd>Most accurate approach to solving for elasticity in which the percent changes in quantity demanded and price are measured relative to the average quantity demanded and price; the initial quantity demand is subtracted from the new quantity demanded; then divided by the average of the two quantities demanded; similarly, the initial price is subtracted from the new price, then divided by the average of the two prices \u00a0<\/dd>\n<dt>point elasticity approach: <\/dt>\n<dd>approximate method for solving for elasticity in which the percent changes are measured relative to the initial quantity demanded and price;\u00a0 the initial quantity demanded is subtracted from the new quantity demanded, then divided by the initial quantity demanded; similarly, the initial price is subtracted from the new price, then divided by the initial price.\u00a0\u00a0<\/dd>\n<dt>unitary elasticity: <\/dt>\n<dd>when the\u00a0calculated elasticity is equal to one indicating that a change in the price of the good or service results in a proportional change in the quantity demanded or supplied<\/dd>\n<\/dl>\n<\/div>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-8803\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Principles of Microeconomics Appendix. <strong>Authored by<\/strong>: OpenStax College. <strong>Provided by<\/strong>: Rice University. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/cnx.org\/contents\/6i8iXmBj@10.170:Nihva8h5@10\/The-Use-of-Mathematics-in-Prin\">http:\/\/cnx.org\/contents\/6i8iXmBj@10.170:Nihva8h5@10\/The-Use-of-Mathematics-in-Prin<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em>. <strong>License Terms<\/strong>: Download for free at http:\/\/cnx.org\/content\/col11627\/latest<\/li><li>Episode 16: Elasticity of Demand. <strong>Authored by<\/strong>: Dr. Mary J. McGlasson. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?time_continue=211&#038;v=4oj_lnj6pXA\">https:\/\/www.youtube.com\/watch?time_continue=211&#038;v=4oj_lnj6pXA<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/4.0\/\">CC BY-NC-ND: Attribution-NonCommercial-NoDerivatives <\/a><\/em><\/li><li>Definition of GDP. <strong>Provided by<\/strong>: Wikipedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Gross_domestic_product\">https:\/\/en.wikipedia.org\/wiki\/Gross_domestic_product<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":29,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Principles of Microeconomics Appendix\",\"author\":\"OpenStax College\",\"organization\":\"Rice University\",\"url\":\"http:\/\/cnx.org\/contents\/6i8iXmBj@10.170:Nihva8h5@10\/The-Use-of-Mathematics-in-Prin\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"Download for free at http:\/\/cnx.org\/content\/col11627\/latest\"},{\"type\":\"original\",\"description\":\"Revision and adaptation\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Episode 16: Elasticity of Demand\",\"author\":\"Dr. Mary J. McGlasson\",\"organization\":\"\",\"url\":\"https:\/\/www.youtube.com\/watch?time_continue=211&v=4oj_lnj6pXA\",\"project\":\"\",\"license\":\"cc-by-nc-nd\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Definition of GDP\",\"author\":\"\",\"organization\":\"Wikipedia\",\"url\":\"https:\/\/en.wikipedia.org\/wiki\/Gross_domestic_product\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"11157938-610c-455e-b1e1-880b14f44f14, e8fa51e4-025e-4dcd-9960-52659d620ad6, 6e0632c3-28d7-4024-ab21-1fa78d19a6be, e5693167-be2f-4607-9992-629dee58c564","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-8803","chapter","type-chapter","status-publish","hentry"],"part":8792,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/users\/29"}],"version-history":[{"count":7,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8803\/revisions"}],"predecessor-version":[{"id":10132,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8803\/revisions\/10132"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/parts\/8792"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8803\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/media?parent=8803"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=8803"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/contributor?post=8803"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/license?post=8803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}