ࡱ> tvs#` bjbj 4d$L=L=L=L=h=4$J>>>>>>>>IJJJJJJ$6KhM%J>>>>>%J>>:J???>">>I?>I??:D,KE>> @5nL=> D EdPJ0JDR&N>&NKE&NKEP>>?>>>>>%J%J?>>>J>>>>$$$$($$$($$$ AP Microeconomics Exam Review Packet #2 Pricing system serves as a rationing device Even when price ceilings are implemented to keep prices at a fair level, the rationing system will usually win out. Consumer Surplus Producer Surplus Elasticity Formula TermDefFormulaExamplesGraph Elastic  Inelastic  Unit Elastic  Perfectly Elastic  Perfectly Inelastic  Factors that determine the price elasticity of goods & services Price of strawberries increase from $3 to $4 per pint and sales of strawberries decrease by 50%, how elastic are demand for strawberries? Price of iPhones decrease by 25% and sales increase by 33%, how elastic is the demand for iPhones? Demand Graph and elasticity: Using the numbers below, do the revenue test: PriceQuantityTotal Revenue$1102836445260Price increase from $1 to $2, type of elasticity and what happens to TR? Price change from $3 to $4, type of elasticity and what happens to TR? Price change from $4 to $5, type of elasticity and what happens to TR? 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