11.12: Video- Elasticity of Demand
The following video is a little long to watch, but it provides an excellent overview of elasticity and explains both the concept and the calculations in a simple, easy-to-follow way.
You can view the transcript for “Episode 16: Elasticity of Demand” here (opens in new window) .
In review:
- Price elasticity measures the responsiveness of quantity demanded to a change in the product price
- The calculation for price elasticity is the percentage change in quantity demanded divided by the percentage change in price
- When the absolute value of the price elasticity is >1, the price is elastic and people are very sensitive to changes in price
- When the absolute value of the price elasticity is <1, the price is inelastic and people are insensitive to changes in price
Contributors and Attributions
CC licensed content, Original
- Elasticity of Demand Introduction. Provided by : Lumen Learning. License : CC BY: Attribution
All rights reserved content
- Elasticity of Demand. Authored by : mjmfoodie. Located at : https://youtu.be/4oj_lnj6pXA?t=1s . License : All Rights Reserved . License Terms : Standard YouTube license