Title

(1) Price Elasticity of Demand I: Concept & Calculation

Topic Category

Price Elasticity of Demand

Publication Date

2011

Keywords

Elasticity, Price Elasticity, Sensitivity, Responsiveness, How Much, Stimulus-Response, Relative Change, Elastic, Inelastic, Unitary Elastic, Perfectly Inelastic

Abstract

This introduces the general concept of elasticity as a measure or indicator of relative responsiveness. The focus in on changes measured as percentages. The more specific concept of Price Elasticity of Demand is introduced. The general approach to calculation of a price elasticity is identified. The interpretation of an elasticity index is explained.

Run Time

9:04

Primary Discipline

Microeconomics

Skills Delivered

Ability to explain concept of elasticity as a relative change indicator. Understanding of special case of price elasticity of demand. Ability to distinguish and explain elastic, inelastic and unitary price elasticity of demand. Ability to calculate and interpret a price elasticity value.

Rigor Level

2000

Prerequisites

Previous Demand, Supply, & Market Videos

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