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Δq
Where ________ is the change in quantity supplied and Δp is the change in price.
percentage change
Because a higher price typically leads to an increase in quantity delivered, the ________ is significant.
negative effect
If the positive effect of increased demand outweighs the ________ of reduced pricing, overall revenue rises.
adjustment phase
The duration of the ________ is one factor of supply elasticity consideration.
percentage change
Elasticity describes the connection between two quantities: the ________ in the quantity requested and the ________ in price.
inferior goods
The term* income elasticity of demand refers to the* percentage change in demand divided by the percentage change in consumer income; the value is positive for normal goods and negative for ________.
Price elasticity of demand
percentage change in quantity demanded/percentage change in price
Total revenue (TR)
(p) multiplied by the quantity demanded (q) at that price
Elasticity formula for supply curve
Δq/(q + q’)/2 ÷ Δp/(p + p’)/2
Elasticity of supply
measures how sensitive producers are to price changes
Income elasticity of demand
percentage change in demand divided by the percentage change in consumer income; the value is positive for normal goods and negative for inferior goods
Note 
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