Chapter 4

Elastic Demand Shows Large-Quantity Response to Price Change

Price Elasticity of Demand Falls into Three Categories

Perfectly Elastic
and Inelastic Demands

Slope and Elasticity
Are Not the Same Thing

A Simple Rule for Calculating
the Demand Elasticity

Supply Elasticity Depends upon
Producer Response to Price

Prices of Basic Farm Products
Have Declined Sharply

Agricultural Distress Results from Expanding Supply and Price-Inelastic Demand

Crop-Restriction Programs Raise Both Price and Farm Income

Gasoline Tax Falls on Both Consumer and Producer

Effects of a Minimum Wage

Price Controls Produce Shortages