Elasticity of Demand

Рет қаралды 729,731

Күн бұрын

How much does quantity demanded change when price changes? By a lot or by a little? Elasticity can help us understand this question. This video covers determinants of elasticity such as availability of substitutes, time horizon, classification of goods, nature of goods (is it a necessity or a luxury?), and the size of the purchase relative to the consumer’s budget.
Microeconomics Course: mru.io/oyv
Next video: mru.io/aqh
Help us caption & translate this video! amara.org/v/GCsX/
00:00 Introduction
00:51 Elastic vs. Inelastic
01:57 Inelastic Graph Example
02:28 Elastic Graph Example
03:18 Elasticity Rule
04:15 Determinants of Elasticity of Demand
05:09 1. Availability of Substitutes
07:31 2. Time Horizon
09:00 3. Classification of the Good (Broad vs. Narrow)
10:11 4. Nature of the Good (Necessity vs. Luxury)
11:12 5. Size of the Purchase, Relative to Your Budget
12:19 Summary

Пікірлер: 126

@MarginalRevolutionUniversity Жыл бұрын

Continue learning with practice questions: mru.io/sxs

@jaidak941 3 жыл бұрын

This man just summarised an entire chapter of my textbook in 14 mins

@mannatkalra7174 3 жыл бұрын

This channel is highly underrated! The concepts are taught in such a simple and lucid manner. Absolutely brilliant 👏

@potatokaiyote 8 жыл бұрын

I enjoy and understand these lectures more than my microecon class. Thanks for the help.

@BenMousavi 5 жыл бұрын

Dear Alex, the fact that you are an Iranian not only makes me more thankful but proud too. love and respect from Iran

@josiahwillemse3514 3 жыл бұрын

Absolutely brilliant. These guys are tons better than the economics courses I normally use for school.

@ariee101 4 күн бұрын

I have Wasted Coaching Fees Rs. 40,000. But I don't have Understand anything from my Tuition but this Channel helps me a lot. It is much better than any Courses or Tuition etc.

@martinepstein9826 8 жыл бұрын

Another great video! 11:53 "Consumers probably won't even notice whether toothpicks are 50 cents or a dollar. That's a 50% increase in price..." :O

@andru5054 8 жыл бұрын

+Martin Epstein from 50 cents to a dollar that`s 100% price increase, as far as I`m concerned

@alainkalubi5542 7 жыл бұрын

Well it's a 50% increase if you think that 50 cents are 50% of a dollar, instead of viewing this as 1 dollar is a 100% increase of 50 cent. But that's just the way they you look at it.

@marie-bo5il Жыл бұрын

wow. interesting and SOOO much better than whatever my microeconomics was trying to explain in a 2 hour lecture. this was clear and to the point. thank you so much!

@yarwonbarto1400 2 жыл бұрын

Thank you so much! Your explanation and examples make it so easy to understand the concept of Elasticity. I was reading the textbook and it didn't make sense, but watching this video clarifies the concept of elasticity.

@klonisarcher6553 8 жыл бұрын

I really like your videos. They have helped me alot. However, changing the price in toothpicks from fifty cents to a dollar is a 100% increase. 50% increase would be seventy-five cents.

@tushargautam1 5 жыл бұрын

It will be clear in the next video actually he used the average to calculate percentage changes

@TasbihaAnsari Жыл бұрын

This is so goood! I was reading my textbook and had no idea what was going on. Look at your video and I get it; I feel as if I don't need to memorize as I get it. Thank you so much!

@trinitypark2769 Жыл бұрын

so good! I'm studying for my mid term. I didn't understand a bit from my professor. So grateful... Thank you.

@raion8784 4 жыл бұрын

I'm in the best business school in France, and this teacher is by far better than mine. Where is all my money going to ??

@facultyofeducation1233 8 жыл бұрын

thanks for you supports young economists and also i thank for your effort that paid the economics...

@lucasmwago1740 7 жыл бұрын

Very useful teaching methodology for beginners like myself. Hope brief notes will be available for further reading and reference

@Newchallengerz 3 жыл бұрын

He's the best lecturer of economics. You deserve 5* rate!

@raquelcrader173 Жыл бұрын

This video has helped me so much with my project so glad I found this

@chriand4258 4 жыл бұрын

Thank you for a great lesson, this can not only work in real life, but also in a game like Runescape that have its own marketplace, like food supply and weapons were food is elastic and weapons are less elastic.

@candiceburger5123 7 жыл бұрын

Thank you for this... very very helpful... clearer understanding!!!!

@raygaytan1836 7 жыл бұрын

Thank you! My instructor needs to take lessons from you. =)

@wm5416 9 жыл бұрын

I am loving these videos! Thank you for posting!

@DavesQualityAutoService 4 жыл бұрын

Great videos. I learned what I needed to learn. Thanks for posting

@tommurt4449 7 жыл бұрын

This was an excellent lecture.

@halimatoubarry1817 7 жыл бұрын

Well explained .Thanks for posting!

@habibakhattab2935 7 жыл бұрын

Thank you so much for this video! can you write down the answer steps for the practice questions please? Thank you in advance

@avelaviruscishe470 6 жыл бұрын

Now it is all clear,,,,,,,,,,,,,,,,,,,,,thank u sir.

@ruthvidal6466 3 жыл бұрын

You guys the absolute best!!! Wow u saved me. Thank you

@The_Explainer365 3 жыл бұрын

Thanks very much I've got a lot,than my University. Teacher,Be blessed,

@norelbayan9828 8 жыл бұрын

two hours untill exam lets go thank you for this great video

@john-olivierlukama1548 3 жыл бұрын

Did you pass or fail?

@UyenNguyen-ot5sq 2 жыл бұрын

wonderful content an easy to understand explanation. Thank you!

@miansalman5738 6 жыл бұрын

I really understand and achieve more knowledge than i think.Thanks

@economicshelp7505 6 жыл бұрын

Mian Salman Microeconomics class 12 CBSE 2018 kzfaq.info/get/bejne/nph4aa6Ey-DKcZc.html

@peternyadowa6530 8 жыл бұрын

that sounds so helpful. thanks

@Dbk1608 2 жыл бұрын

Thank you for the clear explanation

@andru5054 8 жыл бұрын

thanks for the videos!

@wizardOfRobots 5 жыл бұрын

Beautiful intro to elasticity of demand...

@emansiddiqui8537 4 жыл бұрын

Thank god and thank you for making it easy.

@DimaDBrown 4 ай бұрын

Thank you Prof Alex Tabarrok!

@philiptorborg7853 Жыл бұрын

This guy brings relief to my studies

@mespritneel8354 8 жыл бұрын

thanks a lot sir!! helped much :)

@gideonsemeki5283 7 жыл бұрын

Awesome info.

@Munchiie 8 жыл бұрын

Thank you for your videos

@amanalex639 2 жыл бұрын

i'm taking introduction to economics in my university and took me less than 30 mins to be ready for my exam thank u very much

@Liliana-xe2vp 6 жыл бұрын

I love your channel!

@sujonseyeview3599 7 жыл бұрын

this class is better than physhical class..

@michaelhilliary7807 9 жыл бұрын

I DEMAND more

@N.aesth1 5 ай бұрын

Great tips!... Keep uploading thank you!❤

@nokubongabuthelezi2870 2 жыл бұрын

This video was so helpful

@JobinJohnsonArtwork 3 жыл бұрын

Please explain total outlay method and ARC elasticity of demand

@anhphuongnguyen7665 5 жыл бұрын

helps a lot thank u so much

@sureshkumarmahiya 8 жыл бұрын

Thanks for nice video .

@elanurerdogan8586 Жыл бұрын

thank you,you helped me a lot

@jamaicamagali721 3 жыл бұрын

Thank you for the help.

@alecvan7143 5 жыл бұрын

great video again wow!

@mentalhealthadvocate475 7 жыл бұрын

awesome guy very helpfull

@joelj7812 7 жыл бұрын

On the elastic demand curve , the quantity demanded is more responsive to the price than it is on the the inelastic demand curve

@ShivDh1 8 жыл бұрын

thanks sir.. I have a question that my teacher asked me.. the question is that "why price is on y axis and quantity of demand is on x axis"??

@MarginalRevolutionUniversity 8 жыл бұрын

+Shiv Shanker You should review some of the videos from earlier in the course. We begin by covering the demand and supply curves, and equilibrium price. These should help with your homework. Good luck! - Meg (Link: kzfaq.info/get/bejne/bcuKlrOknuCdf3U.html&nohtml5=False)

@ShivDh1 8 жыл бұрын

Marginal Revolution University thanks sir

@drakewilliams10dw 7 жыл бұрын

Thank you

@happy_person171 5 жыл бұрын

Thank you so much love you ❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️

@SquishyAcePilot 5 жыл бұрын

Thank you.

@Mrparthamanna 5 жыл бұрын

Thank you sir.

@erudaishanker 5 жыл бұрын

Thank you sir for such a simple explanation!!!

@cdelcarmen90 8 жыл бұрын

awesome!!!

@chitsein4161 6 жыл бұрын

thanks alot

@msjadoun9620 7 жыл бұрын

very thanks

@gauravmohan9271 2 жыл бұрын

Thank you so much…i keep commenting ..as want such pedagogy should reach out to maximum and they can gain more with less effort…Consumer optimisation 😎

@joshuamerano834 9 ай бұрын

Thank you ❤

@kinarroo2135 2 жыл бұрын

Thank you!!!

@doumouya100 2 жыл бұрын

Well understood

@joelj7812 7 жыл бұрын

It's one of those foundational concepts

@joelj7812 7 жыл бұрын

The narrower the classification the fewer substitutes and the more elastic the curve

@bismillahhakimi858 8 жыл бұрын

fantastic

@childofgod2471 3 жыл бұрын

$0.50 to $1.00 for the price of toothpicks is a 100% increase in price, not 50%. Just to illustrate that it's an even larger price increase than you stated, and still it isn't considered a big deal.

@mynameisworld4097 7 жыл бұрын

thank uuu

@blessysubarno1431 2 жыл бұрын

Now I wonder why I didn't understood from this man... the whole year is wasted eh! 🙂

@youtubeenjoyer199 7 жыл бұрын

the reponsiveness of demand to a change in price

@flif4673 8 ай бұрын

iliq haresva tova!

@fahimfahivlogs 8 жыл бұрын

is there any pdf file copy for this video ?

@MarginalRevolutionUniversity 7 жыл бұрын

No, there's just the video. Sorry about that! -Meg

@centexn 7 жыл бұрын

How bout we get working on it. Sorry about that!!

@PapaJenkinz 7 жыл бұрын

+centexn relax

@joelj7812 7 жыл бұрын

Linear

@berihunephrem4100 4 жыл бұрын

Ethiopian coffee, elastic demand loved

@joelj7812 7 жыл бұрын

The quantity is changing a lot in response the price

@henrikhove7102 7 жыл бұрын

Toothpicks increase in price from 0.5 to 1 is a 100% increase in price isn't it?

@schanemassey3861 7 жыл бұрын

yes but its a relatively small increase to a consumer, thus the quantity demanded will not change.

@leratomotimele5692 6 жыл бұрын

Can one become an economist without maths?

@nhattan6868 Жыл бұрын

4:43

@sohaylam.aminoden7827 3 жыл бұрын

👍👍💜

@joelj7812 7 жыл бұрын

There would be more Sprawl if the price is low

@diegobeltran988 9 жыл бұрын

me gusta

@joelj7812 7 жыл бұрын

I would bargain when the purchase is a large fraction of the budget

@mugojonah9452 2 жыл бұрын

Masterpiece teaching five star

@sirdondaniel 3 жыл бұрын

11:53 - from $0.5 to $1 it's a 100% increase. Sorry! Just trying to look smart here.

@Navak_ 5 жыл бұрын

It's honestly infuriating that the x axis (input) is quantity sold and the y axis (output) is price. Who the F did that bit of ass-backward reasoning? I have to reverse all of my intuitions about how to use the supply and demand curves. You guys even say "price causes a change in quantity demanded" because that's absolutely the common sense way to think about it. You have direct control over the price and only indirect control over the quantity demanded via the price. But my brain is wired from a decade of math class to look to the x axis for the input (which would be PRICE) and the y axis for output (which is QUANTITY).

@Navak_ 5 жыл бұрын

"Although it is normal to regard the quantity demanded and the quantity supplied as functions of the price of the goods, the standard graphical representation, usually attributed to Alfred Marshall, has price on the vertical axis and quantity on the horizontal axis." en.wikipedia.org/wiki/Supply_and_demand ALFRED MARSHALL

@joelj7812 7 жыл бұрын

Do monopoly Subsidy

@joelj7812 7 жыл бұрын

People in Europe adjusted due to taxes

@joelj7812 7 жыл бұрын

Small items, in the short run , more inelastic

@thompsonsummers1557 6 жыл бұрын

why?

@joelj7812 7 жыл бұрын

Ethiopia