Elasticity Part 1
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Lesson Description:
Be able to compute the elasticity of a commodity at any price given the demand function. Use the elasticity function to find the maximum revenue and corresponding price/quantity of the commodity.
Check out www.themathdude.org for more videos.
Additional Resources:
- Notes - Notes on Elasticity
- Elasticity slides - Slides from the video on Elasticity
Questions answered by this video:
- What is elasticity?
- What is the relative rate of change of a quantity with respect to price?
- How do you calculate elasticity for a situation?
- What are the units of elasticity?
- What is the formula for elasticity?
- What happens if E is less than 1, greater than 1, or equal to 1?
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Staff Review
This lesson explains the concept of elasticity being the relative rate of change of a quantity with respect to price. This is just the introductory lesson, and the next two lessons build on this foundation. This is a great place to start, but make sure to watch the next couple of videos.
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