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.
Recommended Citation
Crane, Steven E., "(1) Price Elasticity of Demand I: Concept & Calculation" (2011). Principles of Microeconomics. Paper 63.
http://epublications.marquette.edu/microecon_learning/63
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