Chapter Journaling #5

I found Chapter 5 to be slightly more challenging compared to the previous 4 chapters we read in the textbook. This chapter really builds on the previous chapter concept of supply and demand.  The concept of the price elasticity of demand measures how much the quantity demanded responds to a change in price. That means a good of high elasticity would mean a change in price would result in a huge difference of how much people want to buy the certain good. An inelastic good, like food, would have a very similar value of quantity demanded despite a major change in price. The elasticity concept is not too difficult to understand; however, the graphs really threw me off with the concept. Figure 4 in Chapter 5 confused me the most because the slope is constant but the elasticity changes midway through the graph. As I gain exposure to the graphs more, I'll be able to grasp the concept. On another topic, the total revenue is the amount paid by buyers and received by sellers of the good. To find the total revenue, you would find the area under the certain points of the graph.  I can see how being able to find the total revenue on a graph is extremely helpful. With that knowledge, you can determine which price/quantity will result in the largest revenue for the sellers. Overall, I would rate this chapter a 3 out of 5.  The chapter is a little difficult and takes a little bit more time, but it's certainly interesting.