Introduction to price elasticity of demand | APⓇ Microeconomics

No video

Introduction to price elasticity of demand | APⓇ Microeconomics | Khan Academy

Рет қаралды 727,365

Khan Academy

Күн бұрын

Пікірлер: 181

@wess5601 4 жыл бұрын

I have a test in a hour and thirty minutes 😂

@braydenmoore43 4 жыл бұрын

me too haha

@braydenmoore43 4 жыл бұрын

Wess - how’d yours go i got a 98

@wess5601 4 жыл бұрын

@@braydenmoore43 i probably got like a B+ or something I don't remember 😂

@anishsharma6702 3 жыл бұрын

Same

@yo-sai 3 жыл бұрын

How was it?

@ashleynicoletonido423 4 жыл бұрын

I SPENT HOURS OF WATCHING THIS VIDEO.. I FINALLY UNDERSTAND NOW HOW TO CALCULATE IT..

@Rose-vy1wg 3 жыл бұрын

EXPLAIN PLEASE

@h.s.3883 2 жыл бұрын

I’m struggling with converting the fraction into a percentage. 🙄 I’m going to have to watch another video to figure that out and come back. 😂

@issaabdulsada4267 Жыл бұрын

@@h.s.3883 just multiply them by 100

@mujemufred5071 Жыл бұрын

BUT it seems wrong should be difference in qty out of sum of the two qty

@ajmalismail7427 2 жыл бұрын

Thank you sir. I have been struggling to understand this for hours. Finally i understood it. ♥

@oprahsgran5989 4 ай бұрын

I was spending the past few days being stressed and frustrated about this topic and 2mins into this video I already got it haha!!!

@Lucciddd 4 ай бұрын

ong ong ong ong ong 🎉

@kennyreqruiter2381 2 жыл бұрын

Thank you, I could not actually understand when i saw my universiuty lesson video, but now i learnt it in 9 minutes, Thank you very much to Khan Academy team,

@essentialoilsnx9432 3 жыл бұрын

Price elasticity of demand is very good to know for business owners.

@maribelrodriguez9456 5 ай бұрын

I have been trying to figure out elasticity of demand for 2 days and I FINALLY understood it with your video! Thank you!

@mineheart9247 3 жыл бұрын

I have a test in 30 minutes, wish me luck 🙏

@ridhimamittal5501 4 жыл бұрын

Your explainations are literally the best have great life khan academy teachers u r doing a great job love your videos sooooonmuch very good concept explanation🙏🙏👌👌👍👍👍👍👏👏👏

@evelynhawn3400 Жыл бұрын

Thank you for getting me through college, Mr. Khan 😅

@dmdrendall 2 жыл бұрын

Hi, Interesting you're considering a rate as a quantity. How does adding a time dimension ripple through other aspects including how the demand curve intersects with the supply curve, time value of the product? Also curious as to whether a demand curve's independent variable really is the quantity, rather than the price, since from the consumer's perspective, the quantity isn't usually the given. Typically a price is given, and then the consumer decides how much they want at that price.....sort of expressed as Q = f(P). Because we are typically in the position of having to derive a demand curve, using probability distributions of demand-side characteristics (i.e. demand destruction), and those probability distributions usually relate to the independent variable in a function, how should we normalize such relationships?

@omthapliyal8813 5 жыл бұрын

thnx for the videos sal.....love from INDIA

@britlewis7664 4 жыл бұрын

Why aren't you using the equation ((Q2-Q1)/(Q2+Q1)/2)/((P2-P1)/(P2+P1)/2). My professor and all other videos use this equation, and when you use it you get a different result.

@TheDjozer 4 жыл бұрын

i think thats the midpoint technique

@calvinmarshall519 4 жыл бұрын

That is the equation for the arc price elasticity of demand

@estherkang4593 4 жыл бұрын

How do you decide which formula to use?

@macherdavid 4 жыл бұрын

@@estherkang4593 As far as I know, the midpoint technique is more frequently used. In the technique, what the video shows, it does matter if you count elasticity AB or BA (in this case you get 4). You will not get the same results. With the midpoint technique, it does not matter if you count AB or BA, you will get the same result. It is like an "average" elasticity.

@queenjessacogling335 5 ай бұрын

Yes why?

@robitkarmacharya7238 7 ай бұрын

5:10 Price *ElasTiTi*

@nokubongamnisi 3 ай бұрын

😂

@susanlam4127 Жыл бұрын

So helpful! Thank you for this.

@Roo_Ba_Roo 2 жыл бұрын

Thanks , that’s a great comparative explanation!

@tanimabintehossain9485 4 ай бұрын

Thank you so much, sir. Now, I understand this method .

@AgrippaRahesi 5 ай бұрын

Thanks for your help, now i can be able to understand.❤

@elizabeththabile8625 3 жыл бұрын

I have a test tomorrow I really hope I get this

@mohamadmubarak3870 3 жыл бұрын

LOOV YOU TO THE MOON AND BACK ❤️❤️❤️❤️❤️❤️

@user-ry9vz2wc7t 10 ай бұрын

Thank you for that good work delivered to me

@symphony1045 3 жыл бұрын

thank you

@maheralimaher9543 5 жыл бұрын

why we did not divide by the average as in the first videos ?? Thanks

@sarahbardeskar2269 2 жыл бұрын

great explanation🙃

@EricPham-gr8pg 4 ай бұрын

In the theory of price is the social and environmental cost is what killing us in long run but rarely people had it in condideration or correctly see it

@alebachewmengistie3544 Жыл бұрын

It is interesting! Thank you !

@TheTradeGallery 8 ай бұрын

Alphabet needs this class

@MarqJimmy 4 жыл бұрын

Test on monday, ill let yall know how i did

@enteetne6704 4 жыл бұрын

how did you do

@TwoSentenceHorror-99 4 жыл бұрын

Dude tell us....

@jashsomayya8039 4 жыл бұрын

Tell you bot!!

@zehelkitty6733 3 жыл бұрын

telll us

@navyagupta6814 3 жыл бұрын

NOW I AM INTRIGUED DID HIS TEST LAST A YEAR

@charlieyu810 3 жыл бұрын

I'm wondering then how a market has elastic and inelastic? If we want to decide the market, is this market elastic or inelastic base on the example?

@saw31489 11 ай бұрын

This isn't about a market, this is about consumer demand. Elasticity of demand is on the consumers. Elasticity if supply is on the producers. If it helps, the Elasticity of a market is a hindsight measurement or projection based on history. In this video discussing demand, it's about consumer reactions to market price changes. For example: cigarettes are addictive, if the price of cigarettes goes up, the consumer of that product will likely be unhappy, but will still but the product and we will see little to no difference in the sales of cigarettes (if the price increase is done in moderation of course). This is called an Inelastic market of demand because of the BUYERS habits. Opposite of that would be fast food, like McDonald's recently. They got rid of their dollar menu and raised prices to be equal to restaurant prices. When they raised prices, their sales dropped rapidly. The reason? People didn't think the juice was worth the squeeze... they didn't think it was worth it. This big drop in demand makes the fast food market, ELASTIC, because people are more willing to exercise choice in food. You can be as precise or broad when determining the market you're using, so keep that in mind. A few things that affect demand Elasticity are: - number of alternatives (more alternatives means more elastic and vice versa) - necessity vs luxury (necessities are Inelastic, luxuries are elastic) - time available for market adaptation (the more time that's available to the buyer before needing to purchase a good, the more elastic it becomes). Hope this helps

@user-nr9vo1kb7x Жыл бұрын

thank you so much

@raminmostamerzia7499 4 жыл бұрын

when we have p1 and p2 but do not have q1 and q2 and just have statement that it increases per kg, then what we should do?

@suparna_saha 5 ай бұрын

very helpful

@geraldoyavo3366 Жыл бұрын

Great video here

@keonnebrown3065 2 жыл бұрын

Thank you!

@rimaperera3828 10 ай бұрын

Isn't -9 inelastic?

@FM-dm8xj 2 жыл бұрын

thank you sir!

@janfy1787 4 жыл бұрын

he writes neater in computer than i do in my note😂

@vova12342 7 ай бұрын

hi from what i understand it is better to find companies with inelastic demand because they have somewhat of pricing power , but what if they run into competition and need to lower prices since their quantity barely affected in relation to price , i wonder if it true to assume the price elasticity can change from inelastic to elastic after this scenerio ?

@ameera.s1 3 жыл бұрын

I have a quiz tomorrow and this calculation is confusing me 😭

@naamomo9452 3 жыл бұрын

Me too

@ryanfarhat1304 2 жыл бұрын

how does this guy teach everything

@jamessamuel1541 2 жыл бұрын

nice vibes much love

@mohammedrashid2906 8 ай бұрын

Thank

@windowsexpertaa9402 3 жыл бұрын

Who has test of economics ?

@Annie-rq8xr 2 жыл бұрын

I hve a test in 2 hours 32 minutes😊

@gemedoguto7233 Жыл бұрын

Driving of elasticity

@johnburson70 Жыл бұрын

My micro class requires using the midpoint method. So this method is in fact not sufficient.

@shine2678 11 ай бұрын

Exactly!

@amyamy6299 4 жыл бұрын

should you have a negative numbers for ED?

@famousamos 4 жыл бұрын

No, you use absolute values. So the 'negative' number is turned into a positive. You're looking for the magnitude or change in price rather than trying to find a negative number.

@arabicman866 4 жыл бұрын

@@famousamos Why do we take an absolute value?!

@justin-pd7iu 3 жыл бұрын

@@arabicman866 Due to the law of demand, PED is typically negative. So for purpose of analysis, the negative sign is usually ignored and only magnitude is considered.

@Alex-hh3fe 3 жыл бұрын

Have a test currently. Im struggling :(

@eversonbattung6013 9 ай бұрын

i have midterm examination in 2hours, manifesting to pass in exam🙏

@mujemufred5071 Жыл бұрын

DOUBLE CHECK

@ninapeate5271 Жыл бұрын

What if you were trying to find the elasticity of demand for the entire set of goods

@saw31489 11 ай бұрын

Then you are using a broad market and it's elasticity will be more Inelastic as alternatives and substitutes get absorbed into your theoretical. The more broad a market, the less elastic (more Inelastic) it becomes

@ASIFFF32434 10 ай бұрын

Oooon

@AnnaHisiluhepoNafuka-xl3il Жыл бұрын

Thank u sir 👍👍👍🇳🇦

@BCCgautham Жыл бұрын

Actually how the value of elasticity change from negative to positive during interpertation?

@saw31489 11 ай бұрын

It's an absolute value equation. Not sure why he didn't add that

@user-cw6cw8pl8h Жыл бұрын

The price of elasticity of demand for the following product Product 1 Price S30 units sold 150 O00 price 2 S 24 units sold 18000

@andii- 2 жыл бұрын

lol i have a test tomorrow and didnt pay attention in class send help

@codered6822 2 жыл бұрын

Me trying to understand before my exams which are 2 days away😅

@doomsaber101 4 жыл бұрын

i dont get why he puts the fractions that way

@user-ri4gq3vb9x 3 жыл бұрын

please how do i apply this knowledge to geophysic(seismic method)

@artughankarayel3182 3 жыл бұрын

Bro elasticity is different concept in geophysics. This is about economy.

@someonesomeone9300 3 жыл бұрын

Before goin to z exams ✌🏻

@msalarsiddique5952 3 жыл бұрын

Would you please Can prove price elasticity of demand is negitive for all negatively slope demand curve?

@saw31489 11 ай бұрын

Demand is always negatively sloped when graphing it. Which direction you are heading is the question. To that, it's just math. Sorry, I know that might not be very helpful, but it's the way it id

@user-lm7bf7lt4m 10 ай бұрын

I need to know who voices this ASAP

@charlesblythe9527 2 жыл бұрын

Hi Prof! Is there a possibility of finding a zero elastic answer since 0 > 1? :)

@sophia-et2xh Жыл бұрын

Definitely you can find an Ed of zero, but it cannot be greater than 1 since it is less than after all. So, in terms of its type, it's perfectly inelastic-meaning that no matter the change in price, the demand (dependent variable) remains the same which you'll find is a very rare case.

@eclipture3 7 ай бұрын

@@sophia-et2xhcan't it happen with necessitites with no substitution?But actually i guess most good have substitutions,but for instance if we take gas as a good,can it be perfectly inelastic?I think I'm talking nonsense

@arabicman866 4 жыл бұрын

Why do we take an absolute value?!

@mbangrene6858 3 жыл бұрын

Everything may in be inelastic cause the negative sign will make the figures less than one. That's why midpoint technique is the best cause you don't need to assume or take absolute value.

@arabicman866 3 жыл бұрын

@@mbangrene6858 thanks ❤️ I knew that later on 😅 but still thank you

@StanleySweet14 6 ай бұрын

What method is this known as?

@mohafzal2790 5 жыл бұрын

What about the cross elasticity of demand

@curiosityobstinacy1363 6 ай бұрын

I love you❤

@gladys9 10 ай бұрын

I am confused as to why Price from A to B is -1 and E to F is also - 1? why isn't it just 1?

@DShainberg 2 жыл бұрын

I have an ECON 331 exam at 3 😭

@ismetsiriinn 8 ай бұрын

i have a quiz in 20 minutes xd

@YoshiAirhead 6 ай бұрын

i have one in an hour lololol

@ismetsiriinn 6 ай бұрын

@@YoshiAirhead what happened ????? update me man

@misheruraa9928 3 жыл бұрын

What about if from point A to point E

@danicaellasiapno8431 3 жыл бұрын

Same question

@hansmokenieman4930 2 жыл бұрын

U know what we got here? We got an elastic product. U know what dat mean? Dat mean if people go ELSEwhere and get dey printin and copy'n done...DEY GONNA DO IT!

@nadirayhan525 4 жыл бұрын

It's hard.😫

@haslan4885 4 жыл бұрын

It depends on what you've been studying. The first time I tried this, I understood nothing, but stumbled upon it once again when solving the exercises of my Calculus book (at the very beginning, like 'Chapter 2: Limits, Continuity and Derivatives'), and everything made sense

@temwanimulambia8339 Жыл бұрын

How is it 1 over 9 were did the 9 come from

@ishratpuspita2002 2 жыл бұрын

Can anyone plz tell me during covid 19, was the demand for apparel retail products elastic or inelastic?

@saw31489 11 ай бұрын

Elastic. People weren't needing new clothing and incomes, by and large, didn't allow for much luxury purchases and any price shifts were met with scrutiny during this time. You also need to know the market for your country as well. This could be different depending on where you're from

@aubreytshiamogumbo9533 10 ай бұрын

I am writing in 30mims

@hermano8023 2 жыл бұрын

Got a test tmr lmao

@bhartiyainfo1723 5 жыл бұрын

Hi sal khan

@Corarii 2 ай бұрын

dawg i just want to go to uconn for social work why do i have to take this fuckass class

@pragathik9115 Жыл бұрын

I have test in 10 mins

@barrykiplagat 3 жыл бұрын

Thanks. Am sinking now hha

@itsrohit01 3 жыл бұрын

Wait, Is it a straight line or not! If it is, your whole calculation is wrong! Its the slope you refer to and that is constant lol. From your diagram, it is a crooked line and I hope it is so!