Chapter 3 Elasticity - illustrate and explain the formula to calculate elasticity of supply Illustrate and explain the difference between an elastic and an inelastic demand curve -- illustrate and explain with the aid of appropriate diagrams the relationship between elasticity and revenue -- illustrate and explain how elasticity changes along a straight line demand curve -- Calculate price elasticity of demand and interpret your answer p1 $8 p2 $10 Q1 400 Q2 300 -- Illustrate and explain elasticity of supply -- what factors affect the elasticity of supply -- what factors affect elasticity of supply explain concept of income elasticity and normal and inferior goods -- the three different time periods relating to the elasticity of supply -- differentiate between a constant cost industry and and increasing cost industry