Understanding Elasticity of Demand and Revenue in Economics
Classified in Economy
Written at on 
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… Δ Qd Y1
EY = --------- × ---------
Δ Y Q1
…perfectly (or infinitely) elastic:
the extremely elastic situation of demand or supply where quantity changes by an infinite amount in response to any change in price; horizontal in appearance
perfectly inelastic:
the highly inelastic case of demand in which a percentage change in price, no matter how large, results in zero change in the quantity; thus, the price elasticity of demand is zero; vertical in appearance
(relatively) elastic:
the percentage change in quantity demanded is greater than the percentage change in price; measured price elasticity of demand is greater than one (in absolute value)
(relatively) inelastic:
the percentage change in quantity demanded is less than the percentage change in price; measure price elasticity of demand is less than one (in absolute value)
unitary elastic:
when a given percent price change in price leads to an equal percentage change in quantity demanded
… Total revenue:
the price of an item multiplied by the number of units sold:
TR = P x Qd
…Cross-Price Elasticity of Demand:
% Δ Qx percent change in price of widgets
Exy = -------------------
% Δ Py percent change in quantity of sprockets demanded
Qx2 - Qx1
(Qx2 + Qx1) / 2
Exy = ----------------------------------
Py2 - Py1
(Py2 + Py1) / 2
cross-price elasticity of demand:
the percentage change in the quantity of good A that is demanded as a result of a percentage change in good B
interest elasticity of savings:
the percentage change in the quantity of savings divided by the percentage change in interest rates
wage elasticity of labor supply:
the percentage change in hours worked divided by the percentage change in wages