Own Price Elasticity of Demand 0△Q Qx,Px%△Px Negative according to the law of demand ElastiC: E Inelastic:Egx, P <1 Unitary: EOP, =1 Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Own Price Elasticity of Demand • Negative according to the “law of demand” Elastic: Inelastic: Unitary: X d X Q P P Q E X X   = % % , , 1 QX PX E , 1 QX PX E , =1 QX PX E