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Cross Price Elasticity of Demand and its Determinants
Рет қаралды 71,100
Күн бұрынThis lesson introduces the concept of cross price elasticity of demand, or the responsiveness of consumers of one good to a change in the price of a related good. We'll outline the formula, walk through a couple of examples, interpret the results and discuss what factors determine the cross price elasticity of demand between two goods.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.c...
@SmartByt 3 жыл бұрын
Am really glad for your lectures,i have grasped alot of economic contents through your teaching .May God bless you Jason
@ghiasuddintajwhal 6 жыл бұрын
very well explained, thank you Jason Welker.
@Queenny.j 8 жыл бұрын
thank you for sharing these videos, you've been very helpful since I'm facing my mid term tomorrow, but i have a question here, why didn't you use the mid point formula instead of the % formula? my lecturer said that the mid point works best, is it true? thanks in advance :)
@brendanownsu 8 жыл бұрын
no electro house music for your intro jason? im very surprised.. but only because i know how much you love it
@juliaserafim1457 6 жыл бұрын
Awesome explanation you have helped me soooooo much
@aymen577 7 жыл бұрын
the name of the song at the beginning please.
@WildDig 6 жыл бұрын
What about when you have an equation say Qd = 270 - 4P +Pb.... Where Qd is the demand for Good X and P is the Price of good X and the Pb is the price of another good, good B... if we know Pb is 10 and the QD is 240 (The question tells us this) then how can you work out the cross price elasticity of demand? The answer is given as XPD = 10/240 which is positive so they are substitute goods but I don't understand how this follows the formula of %Demand of X/ %Price of B
@santoshtirupati8978 3 жыл бұрын
Can you please explain cross elasticity of demand between New and Old car
@aleaxabad4072 Жыл бұрын
why is there a gun load sound at 1:28?
@nicolemcgillis1393 2 жыл бұрын
Mr Welker, can you please explain why my economics teacher is telling me that for Cross Elasticity and Income Elasticity formulas you calculate the change in demand as Q1-Q2 instead of Q2-Q1 as is shown in this and other videos, and in the PED and PES formula? Also, thank you for your videos, they are very helpful.
@brent2004 Жыл бұрын
He is saying that because ,,,, hmmm idk.
@islamfathi2184 7 жыл бұрын
if the price increase 20%what will happen for the consumption (income elasticity) please answer me by example
@Smidday1 5 жыл бұрын
In my class test our problem was 100 dropping to 70 so a 30% decrease, but if I do 70-100/100 I get -0.3. Where am I going wrong here?
@JasonWelker 5 жыл бұрын
0.3, when expressed as a percentage, is 30%. 0.3 is 30% of 1. 30 is 30% of 100.
@Smidday1 5 жыл бұрын
Jason Welker thanks, I think in our class example the denominator was supposed to be 10 not 100 but thanks for explaining that
@Smidday1 5 жыл бұрын
@@JasonWelker I'm looking at another question, I'm unsure of, so (Q2-Q1)/[Q2+Q1)/2] (P2-P1)/[P2+P1/2] So Quantity dropped from 100 to 80 after a price rises from 10 to 11, I keep getting -2.32, but does this mean that it is elastic? Even though there is a negative?
@gamer_V6 7 жыл бұрын
how come you calculating with "100" now but on the scale you wrote "1000"
@julesdean811 3 жыл бұрын
good song at at start
@jmaimani 2 жыл бұрын
I think you have made a mistake in your calculation. it should be 700 minus 1000 divided by 1000
@saifkhashoggi3481 6 жыл бұрын
song?
@dontreadmyprofilepicture9605 6 жыл бұрын
Brad Sucks - Making me nervous
@talatabsh2768 6 жыл бұрын
I'm telling ur parents to take ur phone away
Think Econ
Рет қаралды 21 М.