Calculating the Elasticity of Demand

[@MarginalRevolutionUniversity]

Continue learning with practice questions: mru.io/cx5

[@JakeRandolphMarketing]

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

[@schanemassey3861]

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

[@harshvithlani9399]

Jake Randolph So true!

[@preciousandarahvlogs5785]

Hahahahaha same bro

[@jackjo2739]

Sadly you are correct....

[@meznar7417]

100% true

[@okorogideonikenna2369]

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

[@nadima.george9499]

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

[@rudolphdandelion6840]

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]

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

[@danielmccaffrey8493]

I study it at University. Don’t

[@danielmccaffrey8493]

@@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]

It’s hard find something else thank me later 😭

[@Copley417]

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]

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

[@Mooyaho90]

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]

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

[@irissidneyyy]

And someone in highschool 😩😭

[@radhikasehgal172]

Nocturnal Toothbrush ha

[@Venkat-sy2fu]

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

[@john-olivierlukama1548]

Wait college level!?!?

[@thecapitalist1502]

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

[@signorkd9840]

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.

[@Rishika-dc1cl]

nice to the point

[@trevormyers811]

"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.

[@noahfrench7267]

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

[@Gurci28]

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

[@mthokozisinkabinde1959]

Why are you making so much sense?

[@ijeomaifeanacho5655]

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.

[@habibullahyadgari5386]

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

[@-omalley5328]

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

[@selvinmacwan2689]

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]

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]

Thanks you

[@sefterovseymur8792]

true

[@nikhilshah8883]

thanks man

[@shawnpwalsh]

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!)

[@KurtVillanuevaYTB]

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

[@leonardoeueueu]

Such clarifying class. Congrats for this great job!

[@jackieann1731]

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

[@MarginalRevolutionUniversity]

Great to hear! Best of luck. -Roman

[@khanfarhan3047]

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

[@elvismbewe9608]

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

[@nnpatricia]

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

[@bradleyfynn2326]

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

[@orianapena9536]

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

[@bazhankawous1808]

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

[@brindleyadolphus4905]

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

[@vishwaindrawasa8999]

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

[@mariavassalou5049]

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

[@angelicaplatnauer8793]

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

[@nkasecarter6295]

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

[@ayshajohn2439]

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

[@abdousaine4351]

Thank you…. This is very clear and easy to understand 🎉

[@joypopoola6115]

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

[@MarginalRevolutionUniversity]

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

[@moonwalker9462]

You are a life saver. Thank you so much.

[@beanburritos97]

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

[@HeydoubleJJ]

Great video! Easy to follow and well produced.

[@ayushroy0885]

This is really better , Love from India 🥰

[@NawodiSamodhya-u3l]

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

[@gaitankitnge3484]

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

[@dynamitae3706]

Its great that you can download the video!

[@vummynalwinga9268]

Thank you so much this was so straight forward

[@BreannaHogg-hv4ki]

Thank you Sir, wish me well on my test

[@theleon2424]

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

[@aaliyahbraynen7529]

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

[@khadijasaqib1939]

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.

[@fijisodaa9787]

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

[@Nelago-b8m]

Finally I`m saved. Thanks a lot sir

[@abdalakamanda3509]

I love your courage

[@radhikasehgal172]

Most useful video

[@MusicalInquisit]

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.

[@madawamadushan7754]

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]

Yes I think the same can u please confirm professor 😊

[@huizylove]

No

[@brindleyadolphus4905]

@@khanfarhan3047 Watch the video again to get it confirmed

[@gurqhan]

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)

[@jentacularkid559]

Wow this was incredibly helpful! Thank you!

[@asumahyakubu6177]

Waw i really enjoy it. Very simple to comprehend

[@carinkoh4836]

Waoo it's so clear, thanks proffesor 😀

[@florencenate8937]

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]

maybe turn off the captions?

[@ibrahimbaig2224]

Love from India❤️❤️❤️

[@amnaarshad1332]

Very very well explained 🙌👍

[@sasiganeshkumar84]

Thank you, very useful

[@mangaldas4021]

Nice video. Very helpful

[@waltz2893]

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

[@murtzasuleman9193]

very comprehensive, i appreciate it.

[@nsasoxivutisoubisi9762]

thank you so much sir, this was more understandable

[@doopa1155]

thanks, sir. your teaching is very helpful.

[@MuslimaJuraeva]

Thank you so much, it was very helpful

[@anupmohanty8862]

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

[@ntombizanelebless4060]

Thank you very much this really helped me.

[@lettiehamata5790]

This video came through for me really

[@rishi_4641]

you are a lifesaver

[@abdiazisahmed5874]

Thank you professor

[@nusabeeliyeva7741]

Thank you for explaining clearly

[@dannytran1587]

7:21 This is misleading, as a number could be less than 1 but still elastic. If the number is BETWEEN 0 and 1, it’s in elastic.

[@necmialgel]

You mean because of the minus (-)? Of what exactly?

[@ChuolThondeng-b6c]

This is the best formula

[@tangomseleni1930]

thank you , you made it so understandable

[@NicklasBekkevold]

At 6:50 you used the sign for congruence rather than approximation (at least in terms of mathematics).

[@MarginalRevolutionUniversity]

Hi Nicklas, The symbol apparently has multiple uses. The tilde can be placed over "=" to indicate "approximately equal to" as well as geometric equivalence, depending on the context. :) Cheers, Meg

[@NicklasBekkevold]

Ah, my bad. Sorry and thanks for answering.

[@monicashanelucero3305]

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

[@norwegianstud]

How do I do this on a calculator?

[@ВПОДДГЦНОЫ]

Thanks a lot this is great explanation 👍

[@barkhayadav8911]

this was much better helpful thnc a lot😊😊😊

[@Infinitesap]

Awsome quality! Thanks

[@KenWorkProduction]

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

[@TheCandyPixel]

KenWorkProduction I believe the same thing

[@GrimFaceHunter]

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

[@manny6669]

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

[@ruthranbalu]

Thank you sir very useful sir

[@mdashifulhasanmajumdar3992]

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

[@AA-ic7cv]

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

[@justanobody482]

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?

[@akshayramsaib4964]

Great video! Thanks

[@richardkalembwe1358]

This is excellent

[@shafiqmoses3963]

Thnx fr the knowledge

[@_nyxs]

Thank you so much sir!

[@kc3669]

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]

Same here

[@michaelnyiko2181]

very helpful and thank youy

[@asifirfan5232]

Can you also explain when demand is perfectly elastic and perfectly inelastic?

[@mppsnco]

Thank you very much! Can you go to Penn State and teach them how to teach this please?!?!?! That said, GO LIONS!

[@mm3111_3]

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]

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?

[@junaidahmadmusazay9198]

thank you so much. really helpful

[@marlinochalwe9036]

Please, help me answer this question.. Suppose you decide to produce Sugar and you discover it has a demand function given by Q= 10^-0.5 Y^0.75. That is to say 10 raised to power negative 0.5 multiplied by Y raised to 0.75. a) Calulate the price elasticity of demand. b) Is demand elastic or i elastic? c) Can you conclude that Sugar is an inferiot good? d) Calculate the income elasticity of demand..... Please, help me! Thanks in advane.

[@kaiser5166]

Thanks doctor 💚

[@halimaakter6370]

Can you suggest me how can I well in Microeconomics?

[@omarmacintyre]

very helpful

[@khanzada1410]

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

[@agajantorayev607]

This is beautiful!!!

[@sirdondaniel]

10:55 - this is wrong. At a price of 230, the quantity is 11 and the revenue will be 2530, which is bigger than the revenue for the price 10. So it is wrong to say that "When the price goes down, revenue goes up". The maximum revenue is always at the price in the middle between 0 and price max, where quantity is 0.