Chapter 5: Elasticity - Part 1

What is an elasticity? 1:00
Price elasticity of demand 6:55
What determines how elastic demand is? 8:53
Calculating the percent change in something 23:01
The midpoint method 25:28
Calculating the price elasticity of demand 27:51
- Example 1 29:28
- Example 2 32:51
Interpretation of price elasticity of demand - what does the number mean? 44:40

[@NhuY-tr8og]

00:02 Introducing the concept of elasticity in relation to demand and supply. 02:28 Price affects quantity demanded based on elasticity 06:52 Price elasticity of demand measures how quantity demanded responds to a change in price 09:40 Gasoline has inelastic demand due to lack of close substitutes. 14:44 The elasticity of demand depends on the market definition and the share of the good in the consumer's budget. 17:02 Goods have elastic or inelastic demand based on budget share 21:35 Understanding how to calculate percent change 23:42 Understanding percent change in test scores 28:29 Calculate price elasticity of demand using percentage change in quantity and price. 30:57 Calculating price elasticity of demand is not hard. 35:40 Calculation of the price elasticity of demand is easy. 37:47 Teaching approach impact on student understanding 41:52 Simplify complex formulas for better understanding 43:39 Calculation of elasticity is not hard, just remembering the basic formula makes it easier. 48:23 Interpreting price elasticity of demand 50:43 Understanding quantity demanded and demand curve shapes

[@danielsparrow5309]

Funny story, i had an economics class in my 2nd year of uni, and my professor gave us the overcomplicated formula for the PED and it made little to no sense to me back then. Looking back at it, it is so much easier and it actually makes perfect sense! Needless to say, i was lost the whole semester after this chapter :D. Thank you so much for doing these videos, they are amazing for anyone who wants to learn!

[@DrAzevedoEcon]

It's very easy to make this more complicated than it needs to be.

[@brishlyalcantar4675]

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[@TaylorTowne]

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Wait, he's writing backwards????

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It's simply mirrored. He answers that question in other vids. He is indeed right handed and the original recording is behind the board and everything is backwards. But it is uploaded flipped.

[@musickf]

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[@user-xr1zf2lj7y]

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[@saarahfrancis7948]

Thank you so much Dr Azevedo! I am doing an online class and it was so difficult to make it as simple on my own.

[@lourdezpuquir9202]

Thank you so much! I barely passed my first quiz sinc3 im taking an online class and i have to read the book and try to make sense of it. Now that i see you explaining it in a different way i see how simple it is. I really appreciate your videos!

[@cordeliaasika2275]

Thank you so much for this video!!!! You took Time in explaining this concept!!!

[@freitag314]

I enjoyed your lecture, especially the reflection on revising your approach to teaching this idea. I've been helping my daughter with her business calculus class, and your video helped make this more concrete.

[@DrAzevedoEcon]

I'm glad the video helped!

[@kaeshaunsingh6106]

Thankyou professor, your lectures have helped me alot for my ECON course

[@JELSONMAUKI]

Day before i have test suddenly i listen to you about easy to calculate PED or E . You help me a lot because was not attending my clsss lecture for almost all semester because of alot of 🌧️🌧️🌧️. Finally i pass my test 13/15.🙏🙏🙏🙏

[@DrAzevedoEcon]

Congratulations! I'm glad I could help out.

[@JELSONMAUKI]

​​​@@DrAzevedoEcon. I calculated and I gt price elasticity demand is 1/3 and I used your simple formula but classmate used that hard formula and he gt -0.2 and went check to that gbt and the answer is -0.2 . Please help to know the real answer. The question below 👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇 Find elasticity of demand given that when the price of a commodity is $ 4, the quantity demanded is 10 units, and when the price increases to $ 8, quantity demanded decreases to 8 units.

[@DrAzevedoEcon]

@@JELSONMAUKI Your calculations are correct. It appears that what your classmate is doing is calculating the elasticity without using the midpoint method. In my opinion, that is incorrect. The reason for using the midpoint method is that your answer is not dependent on which price you start with. If your classmate uses their method, they will get a different answer if they start with P=4, Q=10 than if they start with P=8, Q=8.

[@Nushath]

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[@final_123]

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[@elle8852]

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[@user-uh1qt5rp5p]

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Thank you sir for clear explanation.

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You are an awesome teacher! Thank you so so much for helping me understand ❤

[@DrAzevedoEcon]

Thank you! I'm happy to help!

[@AdilAkylov22]

Dr Aevedo YOU ARE THE BOSS OF THE INTRODUCTION INTO ECONOMICS! YOU ARE THE GREATEST TEACHER. MY TEACHER GAVE ME FORUMA LIKE (Q1-Q2)/[Q1+Q2]/2 // (P1-P2)/[(P1+P2)/2] AND I WAS SO SHOKED

[@DrAzevedoEcon]

Thanks! Those formulas can be pretty intimidating. Glad to help!

[@kensshee]

Thank you so much professor!

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[@flaviot5226]

Thank you Dr. Azevedo you're quite right t way you teach it is brilliant very understandable

[@DrAzevedoEcon]

You're welcome! Glad the videos are helpful!

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Amazing lecture! Chapeau!

[@DrAzevedoEcon]

Thanks!

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[@DrAzevedoEcon]

Thank you!!

[@cmcgrew98]

I think it can definitely be said that you explained this better than my microeconomics teacher.

[@DrAzevedoEcon]

Thank you! Glad to help.

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[@DrAzevedoEcon]

You're welcome! Glad to help.

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[@DrAzevedoEcon]

You're welcome! I'm happy to have been able to help.

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[@DrAzevedoEcon]

You’re welcome!

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[@DrAzevedoEcon]

I have videos on many of the concepts that would be in a principles of macroeconomics or microeconomics course. Make sure to visit my channel and click on the playlist link. I may be uploading more videos in the future.

[@Gioppp]

straightforward ! great

[@DrAzevedoEcon]

Thanks!

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[@DrAzevedoEcon]

Very happy to have helped!

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I hope you have courses online

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[@DrAzevedoEcon]

Thank you!

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[@DrAzevedoEcon]

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[@DrAzevedoEcon]

You're welcome!

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[@Maalim-h5q]

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[@DrAzevedoEcon]

Happy to help! Thanks for watching!

[@albertanaaquayetey]

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[@DrAzevedoEcon]

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[@seson1615]

Should've went with a red marker, professor. But this was very helpful

[@kylejulius9596]

Thanks for the content! What book is this based on?

[@keeanshank]

Principles of microeconomis

[@byukusengeyvette5982]

what is the value of that 20 we are using alwys

[@DrAzevedoEcon]

I'm not sure what you are asking here....can you be more specific?

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[@DrAzevedoEcon]

I actually teach Principles of Macroeconomics and Principles of Microeconomics online every summer at the University of Central Missouri.

[@sureyabell2082]

Thank you!!

[@DrAzevedoEcon]

You're welcome!

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Thanks!

[@DrAzevedoEcon]

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🎉

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[@motivationdr1]

❤

[@DrAzevedoEcon]

👍

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The accent when he says measure is so cuteee 😩🥵

[@DrAzevedoEcon]

Ha! That's my Missouri Ozarks accent coming through.

[@afridialam8577]

Screen in blurr but lacture is awesome

[@DrAzevedoEcon]

You should check the playback settings for the video. The screen shouldn't be blurry.

[@mudrikasinghal4589]

28:15

[@ahadamin7361]

44:44

[@Mansi_Saluja]

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[@DrAzevedoEcon]

You're welcome! Happy to help!