Elasticity and floor and celing

Elastic demand-Greater than one
Inelastic demand less than one
Unitary elasticity- =1

 Formula

1. New-old/old  in quantity
2. New-old/old in price
3. Change in quantity/change in price
4. Take the absolute value of number 3

Price ceiling- the maximum price that can be legally charged for a good or a service. At the bottom
Price floor-minimum price for a good  or a service. At the top


They are opposites.

• Expansion-real output in the economy
• peak- real output is at its highest
• Contractionary-out put is decreasing
• Trough- the lowest point of real GDP