Overview 1 Chapter 4 introduces the concept of elasticity (including price elasticity of demand, income elasticity, cross-price elasticity, and price elasticity of supply). It presents elasticity as an extension of the supply and demand model presented in Chapter 3. The effects of price elasticity of demand on total revenue and total expenditures is discussed and explored graphically Chapter 4: Elasticity Slide 6MB MC Chapter 4: Elasticity Slide 6 Overview 1 ◼ Chapter 4 introduces the concept of elasticity (including price elasticity of demand, income elasticity, cross-price elasticity, and price elasticity of supply). It presents elasticity as an extension of the supply and demand model presented in Chapter 3. The effects of price elasticity of demand on total revenue and total expenditures is discussed and explored graphically