Elasticity & Consumer Welfare

Read the full Week 4 chapter. Covers price elasticity of demand, the point and arc formulas, determinants of elasticity, total revenue and pricing strategy, income and cross-price elasticity, consumer surplus, and market demand aggregation - including all derivations and key diagrams from lecture.

Download the clean or annotated slide deck and watch the asynchronous lecture videos covering elasticity formulas, the revenue rectangle, consumer surplus, and market demand aggregation.

Eight interactive tools: the elasticity meter (point vs arc), the living demand heatmap, the revenue rectangle, a pricing strategy simulator, the determinants builder, the consumer surplus triangle, a surge pricing simulator, and the market demand aggregator.

Submit your graded problem set for Week 4 on Brightspace. Complete and submit before the deadline to receive full credit.

Randomly generated problems covering point elasticity, arc elasticity, total revenue analysis, and consumer surplus. Attempt each, then reveal the full worked solution.

20 cards covering definitions, equations, graphical reasoning, and true/false for elasticity, total revenue, consumer surplus, income and cross-price elasticity, and market demand aggregation.