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Interpreting Price Elasticity of Demand
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Күн бұрынHi Everyone, in this video I’m discuss interpreting price elasticity of demand. The video is in basically two parts, I’ll start by talking about interpretation of the numerical value interpreting whole curves as relatively inelastic / elastic. The chapters are below:
0:00 Introduction
0:22 What PED is / Why it's negative
1:47 Elastic Demand
4:54 Unit Elastic
5:41 Inelastic Demand
6:50 Perfectly Inelastic and Perfectly Elastic
7:50 Elasticity of the whole curve relative to another
Here's the link to why elasticity changes along demand curves with any slope: • Why Elasticity Changes...
Keep safe everyone!
@Ary-fz1hj 9 ай бұрын
This was such a good video, you explained it perfectly and it couldn’t have been better. Thank you
@ShashiBhartix 6 ай бұрын
A beautiful explanation. Thank you!
@econhelp_official 6 ай бұрын
You're very welcome! That's so nice of you to say, thank you! ❤️❤️
@Tollbi 2 жыл бұрын
Very useful thank you!
@econhelp_official 2 жыл бұрын
Glad it was helpful Andresl! Thanks for the comment Happy New Year!!
@benjaminbreeg1323 2 жыл бұрын
Are there notable,spesific examples of inelastic and elastic PED
@econhelp_official 2 жыл бұрын
Hi Benjamin, I list some examples at 4:10 and 6:25. In terms of 'notable' examples, Martin Shkreli's increase of the price of drugs used to treat conditions associated with HIV is a good example of a product that has inelastic demand, and how large increases in prices do not necessarily lead to huge changes in demand - or to say in a more careful manner, how business's can increase profit if a product has inelastic demand. Notable examples of elastic demand goods are a little harder to come by apart from the regular examples of goods that are fairly identical across a large range of firms and thus are goods that have lots of substitutes (sand, oranges, carrots...). Any new industry that has become open to competition are interesting examples because we can compare demand elasticities before and after a firm is subject to competition from substitutes. Hope that helps!
@benjaminbreeg1323 2 жыл бұрын
@@econhelp_official thanks for your endeavors
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