Unit One: Price Elasticity of Demand
Elasticity: how drastically buyers demand will change when prices rise or fall
Elastic: demand will change greatly given a small price change (Wants)
Inelastic: demand for product will not change, regardless of price (Needs)
How To Calculate Elasticity:
1. Find the difference of New Quantity and Old Quantity; Divide
the difference by the Old Quantity
2. Find the difference between New Price and Old Price; Divide
the difference by the Old Price
3. Divide your final number from Step 1 by your final number in
Step 2. You have now found your Price Elasticity of
Demand or your PED.
Your steps on how to find elasticity were very simple and to the point. It helped me grasp a better understanding of the concept. However, i think it would have been good to site and example of the work being done to further help others understand.
ReplyDeleteIt was interesting that you did the math word for word, because some people tend to get confused when they see symbol. One thing you might want to add is a video with an example, or just a regular example in addition to the instructions that you already displayed. Overall, it was short and easy to read!
ReplyDelete