2. The degree of elasticity of demand is measured by the coefficient Ed which is

Percentage Change in Quantity Demanded/Percentage Change in Price

Percentage Change in Price = Change in Price/Original Proce * 100

a. If %change in Price is < %change in Quantity Demanded = Elastic

b. If %change in Price is = infinite change in Quantity demanded = Perfectly Elastic

c. If %change in Price is > %change in Quantity Demanded = Inelastic

d. If %change in Price is = 0 Change in Quantity Demanded = Perfectly Inelastic

e. If %change in Price is = %change in Quantity Demanded = Unit Elasticity

Total Revnue = Unit Price * Quantity Sold.

1.If Price and Total Revenue Change inversely = Elastic

2.If Price and Total Revenue Change Directly =

Total Cost(TC): The sum total of TVC and the TFC is TC

Some common words found in the essay are:
Total ProductTP, Q3 Explain, ATC1 ATC2, Perfect Competition, Quantity Demanded, Ans Elasticity, Change Directly, U-shaped Diagram, AR Price, TC Diagram, quantity demanded, quantity demanded =, demanded =, law diminishing, %change price, perfect competition, diminishing returns, table notes, elasticity demand, price =, law diminishing returns, %change price =, additional unit, %change quantity demanded, diagram table notes,
Approximate Word count = 683
Approximate Pages = 3 (250 words per page double spaced)