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11.12: Video- Elasticity of Demand

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    48145
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    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.

    Thumbnail for the embedded element "Episode 16: Elasticity of Demand"

    A YouTube element has been excluded from this version of the text. You can view it online here: pb.libretexts.org/pom2/?p=600

    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

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    • Elasticity of Demand Introduction. Provided by: Lumen Learning. License: CC BY: Attribution
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