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The demand for a good which is elastic will react significantly to a change in price of a good. So if I was selling mars bars in a shop ( and mars bars were an elastic good) if I incre...

This a fundamental for theory of the firm. It explains the shape of the marginal product (MP) curve!

Formal Definition: When one or more factors are held fixed, there will come a p...

Monopoly power is commonly associated with oligopolists and not just monopolists.

Firms in these markets use their monopoly power to construct entry barriers such as hugely expensive adve...

Elasticity of demand, or more formally Price Elasticity of Demand (PED) is a measure of the extent to which the amount of a good demanded by consumers varies with response to a change in its price. It ...

We are using elasticity to find quantity, instead of the other way around. We will plug in what we know, and solve from there. 

Elasticity = 
And, in the case of John, %Change in Qua...