Video: Elasticity of Demand

The following video is a little long to watch, but it provides an excellent overview of elasticity and explains both the concept and the calculations in a simple, easy-to-follow way.

You can view the transcript for “Episode 16: Elasticity of Demand” here (opens in new window).

In review:

• Price elasticity measures the responsiveness of quantity demanded to a change in the product price
• The calculation for price elasticity is the percentage change in quantity demanded divided by the percentage change in price
• When the absolute value of the price elasticity is >1, the price is elastic and people are very sensitive to changes in price
• When the absolute value of the price elasticity is <1, the price is inelastic and people are insensitive to changes in price

LICENSES AND ATTRIBUTIONS

CC LICENSED CONTENT, ORIGINAL

• Elasticity of Demand Introduction. Provided by: Lumen Learning. License: CC BY: Attribution

ALL RIGHTS RESERVED CONTENT

• Elasticity of Demand. Authored by: mjmfoodie. Located at: https://youtu.be/4oj_lnj6pXA?t=1s. License: All Rights Reserved. License Terms: Standard YouTube license