Calculating the Elasticity of Demand

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Calculating the Elasticity of Demand

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Marginal Revolution University

Күн бұрын

Пікірлер: 261

@MarginalRevolutionUniversity Жыл бұрын

Continue learning with practice questions: mru.io/cx5

@JakeRandolphMarketing 7 жыл бұрын

This is so much better than my professor reading off slides that I am paying thousands of dollars for....

@schanemassey3861 7 жыл бұрын

SO TRUE!!!! (Bartender this man's drinks are on me!)

@harshvithlani9399 4 жыл бұрын

Jake Randolph So true!

@preciousandarahvlogs5785 4 жыл бұрын

Hahahahaha same bro

@jackjo2739 3 жыл бұрын

Sadly you are correct....

@meznar7417 3 жыл бұрын

100% true

@nadima.george9499 4 жыл бұрын

I'm 15 and I'm learning so much from this. I wanna become an economist.

@rudolphdandelion6840 4 жыл бұрын

Good for you kid. Be sure to get good at math. You’ll need math when you go further down the realm of economics.

@lastyhopper2792 3 жыл бұрын

not to just be good at math, but actually understand how it works

@danielmccaffrey8493 2 жыл бұрын

I study it at University. Don’t

@danielmccaffrey8493 2 жыл бұрын

@@rudolphdandelion6840 Honestly underestimated how much maths would be in economics, would seriously reccomend taking A level maths because I’ve got about 2 years of a level to catch up on

@kw.drillz6111 2 жыл бұрын

It’s hard find something else thank me later 😭

@Mooyaho90 9 жыл бұрын

Very helpful for someone taking a college level online economics class and I have to teach myself everything, now it makes sense. Edit: Idk why I’m getting responses on this comment so many yrs after making it. I don’t even remember the class I took. It was probably in my freshman yr of university. It was helpful at the time that’s it. It was required of my degree to take economics as a business major. And yes you can probs take this in high school in AP or something idk nor do I care. Like yeah in college you have to take stuff you probably could’ve gotten credit for in high school. I got college credit on history and English classes not science or math. Some classes you can’t get AP credit for. Anyways yeah that’s all I have to say.

@NocturnalToothbrush 6 жыл бұрын

I'm in the exact same boat now. Did you get through the course after?

@irissidneyyy 6 жыл бұрын

And someone in highschool 😩😭

@radhikasehgal172 4 жыл бұрын

Nocturnal Toothbrush ha

@Venkat-sy2fu 3 жыл бұрын

wait wtf how is this college level im doing it in ninth grade

@john-olivierlukama1548 3 жыл бұрын

Wait college level!?!?

@okorogideonikenna2369 3 жыл бұрын

This is the best I've ever come across. Self explanatory , easy and interactive. Very very helpful thanks a million.

@Copley417 Жыл бұрын

I'm getting my Masters from a top tier (USNWR top 3 in this area) university. The professors here are fantastic and my microeconomics professor is one of my favorites. They are not as effective as these guys. Your knack for avoiding jargon, the build of the curriculum is excellent with no surprises so far, the avoidance of comprehension-killing abbreviations, and the tie-in to real world scenarios is simply outstanding. I am in my late 50s, a physician scientist and have sat through tens of thousands of lectures. You 2 are among the GOATs. I mean it. Gentlemen, you have created a phenomenal legacy and should be VERY PROUD!. Thank you all. Do you have a biostatistics channel?? LOL

@larsaugustat7029 9 ай бұрын

Good to read that I am not the only one doing a master and still coming back to basics:D

@thecapitalist1502 8 жыл бұрын

I wish that these guys were my profs back then excellent teaching .. thumbs up.

@signorkd9840 Жыл бұрын

The curve of corn is inelastic and in case of inelastic demand curve the revenue rises with the increase in price. In the given year, there will be a shortage of supply which will increase the price and shift the supply curve up and left. So, as the price is increased the revenue of farmers will increase.

@selvinmacwan2689 4 жыл бұрын

when yield in going down the supply will be less and the price will go up. thus when the price goes up and the demand goes down by just a little we get more revenues and a inelastic curve. Also the reason why the demand will go down just by a little is because the substitute of corn that is soybeans is also not more in supply.

@tadej3080 3 жыл бұрын

I'm also guessing because corn is a broadly defined good, which is used in many different ways, the price elasticity of demand will be lower enough just as it is.

@vaxman3839 3 жыл бұрын

Thanks you

@sefterovseymur8792 3 жыл бұрын

true

@nikhilshah8883 10 ай бұрын

thanks man

@mthokozisinkabinde1959 7 жыл бұрын

Why are you making so much sense?

@noahfrench7267 4 жыл бұрын

I have learned more in 15 minutes then the 3 hour lecture for micro economics. thank you

@GjaP_242 4 ай бұрын

"I am just a businessman, giving the people what they want." 9:06 Al Capone

@trevormyers811 7 ай бұрын

"I can never remember myself so I always draw these little graphs". Somehow I doubt that but this guy is a legend. Made it so easy to understand.

@habibullahyadgari5386 6 жыл бұрын

I am a student of BBA in Afghanistan I really enjoy studying withyou all thanks a lot

@ijeomaifeanacho5655 2 жыл бұрын

For the first time, i understand how to calculate elasticity perfectly. Thank you. This is way better than my professor's explanations. I've subscribed to your channel.

@-omalley5328 2 жыл бұрын

Oh my God thank you so much you have saved me. I've been struggling in my college Economics class and was desperately needing a breakdown of how to calculate elasticity in each of these situations. Thank you, thank you, thank you

@shawnpwalsh 4 жыл бұрын

Wow, 6 hours trying to figure this out from the materials my University provided. Now I have it down in 30 min. (only because I stopped to take notes and apply this to the problems I've been trying to solve!)

@leonardoeueueu 6 жыл бұрын

Such clarifying class. Congrats for this great job!

@KurtVillanuevaYTB 2 жыл бұрын

Thank you from someone from 9th grade and is currently working on my homework related to this lesson. Oh wait I'm done thanks to you, it's fast and easy

@tutor2u-official 4 жыл бұрын

We have some great free study resource collections for A level Economics and IB Economics - click here www.tutor2u.net/economics/collections

@angelicaplatnauer8793 6 жыл бұрын

Very helpful for going back to the basics on how to calculate elasticity. Especially for midterms!

@elvismbewe9608 2 жыл бұрын

Nothing shot of Laudatory Lecture Wow😲.... Excellent 🤞🏾😁

@jackieann1731 6 жыл бұрын

I've been really stuck while learning economics but this really helped me!!

@MarginalRevolutionUniversity 6 жыл бұрын

Great to hear! Best of luck. -Roman

@nnpatricia 2 жыл бұрын

ive commented before but really your videos have helped me so much. much better than textbook honestly saying. thank you for your great work :)

@khanfarhan3047 4 жыл бұрын

Very very helpful my ma'am cannot teach like this in her whole lifetime

@moonwalker9462 6 жыл бұрын

You are a life saver. Thank you so much.

@mariavassalou5049 6 жыл бұрын

You make it look really simple. Great work! Thank you!

@orianapena9536 4 жыл бұрын

I dont understand why or how you make so much sense, but you do. Thank you for all your help

@bradleyfynn2326 5 жыл бұрын

This video helped me to finish my Agricultural assignment, thank u, it was delightful watching this it really helped

@bazhankawous1808 8 жыл бұрын

I didn't feel that I'm in home and learning this much .Thank you its very helpful.

@brindleyadolphus4905 3 жыл бұрын

You bet. We are stuck at home and learning this now. Good old days :I

@vishwaindrawasa8999 6 ай бұрын

Wow I surprised ❤ this lesson series is better than our prof lectures readings ❤

@vummynalwinga9268 2 жыл бұрын

Thank you so much this was so straight forward

@madawamadushan7754 5 жыл бұрын

When the yield is going down the unit price should increased. So farmers can earn more profit because corn & soybean have inelastic type demand curve. Am I correct sir?

@khanfarhan3047 4 жыл бұрын

Yes I think the same can u please confirm professor 😊

@huizylove 4 жыл бұрын

@brindleyadolphus4905 3 жыл бұрын

@@khanfarhan3047 Watch the video again to get it confirmed

@nkasecarter6295 5 жыл бұрын

Thank you...you have no idea how you made learning elasticity easy for me

@HeydoubleAA 6 жыл бұрын

Great video! Easy to follow and well produced.

@beanburritos97 11 ай бұрын

His voice reminds me of Ross from Friends. Great content!

@gaitankitnge3484 8 жыл бұрын

very good helpful i have an exam on friday with your way of teaching ill do more better than before thanks

@radhikasehgal172 4 жыл бұрын

Most useful video

@ayshajohn2439 2 жыл бұрын

This video is very useful. Wished I had found this when I was in school.

@gurqhan 8 ай бұрын

Slope of the demand curve gives clue of the elasticity type. Curve ( or slope ) formula is rise= P / run = Q. A steep one will be inelastic as price (p) rise more than demand (Q) decrease. (or vica versa)

@MusicalInquisit 5 жыл бұрын

Since the yield must have decreased, the amount supplied must have decreased in the market. Therefore, the supply curve shifted to the left. As a result, the equilibrium quantity is of a lower amount than the previous quantity demanded. If the demand curve remained the same, then it would be fair to say that the price has increased as a result of the shift in supply. However, if the total revenue increases for farmers because of the increase in price, it would be safe to say that the demand curve was inelastic, at least in the short-term.

@aaliyahbraynen7529 4 жыл бұрын

This was an amazing video. Keep up the good work and make more.

@user-se7nj5bu8k Жыл бұрын

Thank you so much. The content is easy to follow and engaging.

@kc3669 3 жыл бұрын

Welp. I wasted 1 hour of reading and still banging my head against a wall, when I could have just watched 15 minutes and understand it.

@ijeomaifeanacho5655 2 жыл бұрын

Same here

@robfraser2820 5 жыл бұрын

The definition of percent change is incorrect. That error ripples through the whole calculation for elasticity. % change = (Q2 - Q1) / Q1. For example, if Q1= 100, and Q1=150, clearly this is a 50% increase from Q1 to Q2. My formula also gets this result: (150-100)/100 = 50/100 = .5 = 50%. His formula, (Q2-Q1)/((Q2+Q1)/2), yields (150-100)/((150+100)/2)=50/125=.4=40%, which is clearly wrong.

@hosseinfaridnasr2778 4 жыл бұрын

Yes, finally someone else has noticed. I solved one of the examples and my answer was different from the one given in the video and I doubted my definition of percent change.

@ayushroy0885 9 ай бұрын

This is really better , Love from India 🥰

@KenWorkProduction 8 жыл бұрын

So there is a drought yet farmer can maximize revenue by raising the price so it has to be an inelastic demand curve?

@TheCandyPixel 7 жыл бұрын

KenWorkProduction I believe the same thing

@GrimFaceHunter 7 жыл бұрын

In US yes, due to use of corn syrup and methanol in gasoline.

@manny6669 3 жыл бұрын

Another good example is gasoline, because there's hardly a substitute for it

@theleon2424 2 жыл бұрын

Thank you. It is so beneficial for me to understand elasticity. Keep going.

@joypopoola6115 3 жыл бұрын

God bless you! This, plus reviewing the lecture 2x and reading correlated chapters in Economics for Dummies, I can do this!

@MarginalRevolutionUniversity 3 жыл бұрын

Yes you can! Keep up the work - econ is not easy but it's worth the effort. -Roman

@DeadMeatxx Жыл бұрын

Hats off the best teachers ever, and here I am paying thousands for my professor not even coming to lectures 💀

@norwegianstud 7 жыл бұрын

How do I do this on a calculator?

@khadijasaqib1939 2 жыл бұрын

So is so easy and interactive to understand! Could you still help me out on this one? Product falls to 6$ to 8$ causing demand to extend from 1250 to 12500.

@hendrinannaftal1351 6 жыл бұрын

Finally I`m saved. Thanks a lot sir

@abdalakamanda3509 6 жыл бұрын

I love your courage

@jentacularkid559 3 жыл бұрын

Wow this was incredibly helpful! Thank you!

@sasiganeshkumar84 9 жыл бұрын

Thank you, very useful

@fijisodaa9787 2 жыл бұрын

thank you so much, i really understand the concepts better now!!

@dynamitae3706 3 жыл бұрын

Its great that you can download the video!

@carinkoh4836 6 жыл бұрын

Waoo it's so clear, thanks proffesor 😀

@mangaldas4021 6 жыл бұрын

Nice video. Very helpful

@AA-ic7cv 5 жыл бұрын

hi, i have a question. if the price elasticity of demand is -1.4 which is negative. is it considered to be inelastic because its less than one, or is it elastic because we don't consider the negative and we only take the number so its going to be greater than one. thank you

@doopa1155 4 жыл бұрын

thanks, sir. your teaching is very helpful.

@asumahyakubu6177 4 жыл бұрын

Waw i really enjoy it. Very simple to comprehend

@MuslimaJuraeva 7 жыл бұрын

Thank you so much, it was very helpful

@florencenate8937 2 жыл бұрын

Thank you so much for sharing your knowledge. One suggestion, the words/ sentences appearing on the screen blocks me from seeing your written explanations. Anyway thank you again, you're very helpful.

@ghostofday5025 2 жыл бұрын

maybe turn off the captions?

@monicashanelucero3305 3 жыл бұрын

What type of elasticity and the formula for?? Price increase,decreAse demand and supply increase

@ntombizanelebless4060 6 жыл бұрын

Thank you very much this really helped me.

@waltz2893 4 жыл бұрын

I really wish you were my professor. Damn! Your presentation is really easy compared to my proffesor.

@amnaarshad1332 Жыл бұрын

Very very well explained 🙌👍

@nusabeeliyeva7741 4 жыл бұрын

Thank you for explaining clearly

@anupmohanty8862 4 жыл бұрын

Thank you so much sir, now I am able to solve problems

@murtzasuleman9193 4 жыл бұрын

very comprehensive, i appreciate it.

@nsasoxivutisoubisi9762 3 жыл бұрын

thank you so much sir, this was more understandable

@abdiazisahmed5874 Жыл бұрын

Thank you professor

@mahfoozkhan63 3 жыл бұрын

Thank you very much It was really helpful.

@justanobody482 2 жыл бұрын

I have a question. Are the figures and the graphs always relative to the buyers’/market’s behaviors? Like can we actually predict the demand of quantity when we change a price through figures?

@ibrahimbaig2224 3 жыл бұрын

Love from India❤️❤️❤️

@asmacross499 6 жыл бұрын

This was very helpful thank you very much.

@TheSagesSon 5 жыл бұрын

Please I'm confused, when he got -10 95 10 15 How did he calculate it, this is where I am stuck.

@joaovictorbarbosa9785 5 жыл бұрын

Hello Victor, and yes, that part is a bit confusing. However, it all comes to this method he introduced called the *midpoint method* Instead of just dividing the change in the quantity demanded by the change in price, he does the following: Main Equation: (Demand2 - Demand1) / (Demand2 + Demand1)/2 Where: (Demand2 - Demand1) = -10 and the bottom part of the main equation: (Demand2 + Demand1)/2 represents (90 + 100)/2 = 95. You can see that by adding demand 2 and demand 1 and dividing that number by two he is finding the midpoint of that change. Just that! Then you have -10/95 = -0.105 The same applies to the bottom part of the fraction.

@TheSagesSon 5 жыл бұрын

@@joaovictorbarbosa9785 thank you so much, I'm really bad at math so I'm just looking to pass this economics exam we'll be having soon

@lettiehamata5790 7 жыл бұрын

This video came through for me really

@omarmacintyre 8 жыл бұрын

very helpful

@mdashifulhasanmajumdar3992 8 жыл бұрын

this will be a inelastic demand curve because when demand is high but the supply is low the price goes up which makes it an inelastic demand curve

@SkylarStullerSilverstar 6 жыл бұрын

www.npr.org/sections/thesalt/2012/08/14/158752153/secret-side-of-the-drought-corn-farmers-will-benefit

@tangomseleni1930 2 жыл бұрын

thank you , you made it so understandable

@khanzada1410 6 жыл бұрын

Very nice . Sir make more video's 8 to 13 chapters please fast , My exam is near 😢

@mm3111_3 6 жыл бұрын

Thank you so much for the lecture! But one question: why when you explained the Midpoint Formula you divided the average by 2? From where did that 2 came from?

@SmallEditsbyTiwa 6 жыл бұрын

Hi Milena, the two is because he is finding the average between 2 numbers, if he was finding the average between 3 numbers it'll be 3 an so on. I hope this is clear?

@huynhthanhduy8556 8 жыл бұрын

I have the same problem with questions 3,4. Please! someone help me!

@MarginalRevolutionUniversity 8 жыл бұрын

These questions are tricky! My advice is to graph it and use perfectly elastic (horizontal) and perfectly inelastic (vertical) demand curves when you do. For question #3, if the housing supply curve shifts out (because housing is increasing), then the price of housing will stay the same if demand is perfectly elastic and the price will actually drop if demand is perfectly inelastic. Therefore, if you’re trying to pay the lowest price possible, you’d want demand to be inelastic because the price drops with an increase in the supply of housing, or any good. If you just want intuition, think about it this way- if demand is perfectly inelastic, it means that demand isn’t responsive to a change in price. Now apply this logic to question #4. In this question, the supply of housing is decreasing (shifting in). As in question #3, if the demand for housing is elastic, the price will stay the same. If demand for housing is inelastic, the price of housing will increase because this time, unlike question #3, the supply of housing has decreased. If you’re again trying to pay as little as possible, you should hope that demand for housing is elastic. Hope this helps! -Mary Clare