Elasticity Part 2

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Taught by TheMathDude
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2962 views | 1 rating
Meets NCTM Standards:
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.

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Additional Resources:
Questions answered by this video:
  • What is elasticity?
  • How does elasticity relate to maximum revenue?
  • How do price, revenue, and elasticity relate to each other?
  • If you change price, how does it affect demand, revenue, and elasticity?
  • What is the formula for maximum revenue?
  • Why does E = 1 at the maximum revenue point?
  • What does it mean for a product to be inelastic?
  • Staff Review

    • Currently 4.0/5 Stars.
    This lesson continues the concepts from the previous lesson. The relationships between price, revenue, and elasticity are explained in this lesson. You will learn how to maximize revenue for a product.