elasticity supply curve, the percentage quantity increases on the horizontal axis exactly match the percentage

price increases on the vertical axis—so this supply curve has a constant unitary elasticity at all points.
120 5 • Elasticity

FIGURE 5.7 A Constant Unitary Elasticity Supply Curve A constant unitary elasticity supply curve is a straight line

reaching up from the origin. Between each pair of points, the percentage increase in quantity supplied is the same

as the percentage increase in price.

5.3 Elasticity and Pricing

LEARNING OBJECTIVES

By the end of this section, you will be able to:

• Analyze how price elasticities impact revenue

• Evaluate how elasticity can cause shifts in demand and supply

• Predict how the long-run and short-run impacts of elasticity affect equilibrium

• Explain how the elasticity of demand and supply determine the incidence of a tax on buyers and sellers
{"file_size_mb": 26.99, "producer": "Prince 14.2 (www.princexml.com)", "batch_upload": true, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "uploaded_via": "batch_uploader", "creator": "PDFMiner", "title": "Principles of Microeconomics 3e", "file_name": "Microeconomics3e.pdf", "file_type": ".pdf", "total_pages": 597, "moddate": "2022-12-07T14:23:05-06:00", "creationdate": "2022-12-07T14:15:44-06:00", "upload_timestamp": "2026-02-07T15:24:38.309401", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf"}