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The liquidation value of the business once all creditors are paid off

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Step 3: Calculate Point Elasticity Example: If the price of apples increases from $1 to $1.10, and the quantity demanded decreases from 100 to 90 apples: Q/Q = (90 - 100) / 100 = -0.1 or -10% P/P = ($1.10 - $1) / $1 = 0.1 or 10% Point Elasticity = -0.1 / 0.1 = -1 Step 4: Interpret Point Elasticity A result of -1 indicates unitary elasticity, meaning the percentage change in quantity demanded is equal to the percentage change in price