**Course Objectives for Chapter 6: ****Elasticity:
The Responsiveness of Demand and Supply**

Students should be able to:

·
Define the price elasticity of demand
and understand how to calculate it.

·
Explain the determinants of the price
elasticity of demand.

·
Describe the relationship between the
price elasticity of demand and total revenue.

·
Define the cross-price elasticity of
demand and the income elasticity of demand, and explain their main determinants
and how they are calculated.

·
Use price elasticity and income
elasticity to analyze economic issues.

·
Define the price elasticity of supply,
and describe its main determinants and how it is calculated.