Skip to main content
Business LibreTexts

11.12: Video- Elasticity of Demand

  1. Last updated
  2. Save as PDF
  • Page ID
    48145

    • \( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)\(\newcommand{\AA}{\unicode[.8,0]{x212B}}\)

    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

    CC licensed content, Original
    • Elasticity of Demand Introduction. Provided by: Lumen Learning. License: CC BY: Attribution
    All rights reserved content

    This page titled 11.12: Video- Elasticity of Demand is shared under a CC BY 4.0 license and was authored, remixed, and/or curated by Lumen Learning via source content that was edited to the style and standards of the LibreTexts platform; a detailed edit history is available upon request.