How to calculate point price elasticity of demand

[@sorcerssenchantress]

You are an angel sent from God thank you!!!!

[@Zephyr-tg9hu]

Wow, that was a lot more simple than I initially thought it was. Thanks!

[@nhahais]

You're awesome! I've been staring at my paper for 20 minutes trying to figure out what to do!

[@auroraautumn8764]

And am still staring after watching this video.

[@AshleighToms-o6r]

THANK YOU! Over an hour spent trying to answer one problem - this explanation and I had the correct answer first try!

[@ThousanWhite]

I'm still lost. Our professor didn't even give us a demand question

[@Ferdinaand]

that makes a lot more sense now, thanks buddy, and to all my aspiring economists, don't give up, dedicate time each day, little by little

[@lifed4375]

real OG making me understand what I was missing the whole time in 1 minute great video

[@lovekpop6958]

Thank you so much. You explain it really well. English is not my first language but i can understand what you said because you spoke slowly and your pronounciation really good

[@FreeEconHelp]

Glad it could help, good luck with your courses!

[@astonmargolis-dias7089]

where the hell did that -50 come from?

[@dimiturzhelezov123]

Derivative of the function

[@blessedlubasi6653]

Which function...he didn't give the function

[@idkhimurban1748]

@@blessedlubasi6653he does Qd=1500-50p

[@rahulsonone1356]

We have a demand function Qd=15000-50p so when in this equation when you will change p by 1 then q will change by 50 times so dq/dp =-50/1 Take any rough values and substitute in equation it will be clear how q change wrt change in p value

[@meabh4877]

Just started intro to economics in uni and this is a life saver thank upi!

[@johnbecker4520]

Thank you, best tutorial I've found on almost any math based problem.

[@daughterofgorgias7235]

How did we find -50 in the second example? Can someone explain please

[@divyanshufauzdar]

differentiation

[@precious888chua]

where did you get -50???

[@quickstax]

From the demand function. Take the derivative or look for the value multiplied by the price.

[@Xeoposer]

Thanks a lot for your help, my teacher failed to teach this and an example of this was shown on the practice exam.

[@mahermor]

Hello. Would you help me out with this problem: how do I estimate the price that maximizes the gross margin, given the following: D=300-60P, and the cost per unit is 1.6?

[@JohnsonWullie-t7n]

Best explanation I’ve ever had honestly…..bless u

[@Radhep123]

Would I always need a function in order to be calculate this?

[@mathannexvienna3548]

The explanation is good, except: a) dQ/dP should be defined as the derivative Q'(P) in case the function Q(P) is more complicated (non-linear) b) the numbers chosen for the first example P=100, Q=10000 seem to be taken at random, but they must satisfy the initial equation Q(P)=15000-50P c) the diagram uses y=Price and x=Quantity, whereas it should be the other way around since the function is Q as a function of P.

[@claytonjohnson3133]

Very concise and clear explanation of what is going on, thanks a lot.

[@FreeEconHelp]

Glad it helped you!

[@svfest]

Do you keep the negative on the PED when you're determining it's elasticity?

[@azizlenox]

Thank you so much. this is realy helpful could you solve the following Qdbmw= Quantity demanded of BMW per year, Pbmw= Average price of BMW, Pm= Average price of Mercedes, I= Average personal income. The estimated regression is: Qd bmw= 150 - .02Pbmw + .05Pm + .02I Requirements: 1. Find the point price elasticity of demand of BMW cars if PBMW= $60,000, Pm=$50,000, and I=$30,000.

[@dustinrossg]

So if (%change in P)/ (%change in Q), does that also mean that the (derivative of Q/derivative of P)*(P/Q) is the same/equal?

[@ztaroautomotive3463]

Thanks for great video! I was really struggling to understand how to find derivatives of the units given in my question. :)

[@chanellehasel2993]

you wrote that the slope is is deltaQ / delta P, but that doesn't make sense because slope is Rise over Run, which on the graph is P over Q, therefore it should be 1/-50.

[@varunmenon553]

Your demand function is given as Q(P) not P(Q). so your value for the gradient of the function will give you delta Q/ delta P and not the other way around

[@profusionfitness]

Delta Q/delta P is the slope of the direct demand function which we've used here , we tend to use the indirect fuction more because we usually plot the price on the vertical axis and quantity on the horizontal axis , so delta Q/delta P is the slope of the direct demand function or the inverse of the slope of the indirect deman function

[@growlife4779]

was looking for this derivation thank you

[@xavieryuchi9408]

Great! Now I understood the formula much better!!

[@khethelogcuma9727]

Don't we have to invert the slope?

[@sindhushaduvvuri9071]

Thank you so much for this explanation. Can i get a clarification that how did you get 14500 as demand for price 10? Is it by assuming? Or else please teach that as well.

[@ztaroautomotive3463]

Here's what he did: In the demand equation shown at 0:22 , i.e. Qd=15000 - 50P he plugged in the value of 10 in place of P so here's how it went down. Qd = 15000 - 50P Let price (P) be 10. Therefore, Qd = 15000 - 50 × 10 Qd = 15000 - 500 Qd = 14500 Ans. Thus, the quantity demanded (Qd) is 14500. I hope that helps! :)

[@kfash5198]

This is awesome. This just helped me with my assignment. What about point price elasticity of supply? same method?

[@safuranahid9341]

At the price of Rs.20, point price elasticity for a product is 2 and quality demanded is 40. Absolute slope of underlying demand curve is? ??? Sir please help me in solving this problem.

[@Cuirenteria]

thank you very much, I was looking this example in spanish and there where no examples.

[@varalakshmi5163]

a) How does Lowering the Price of the Apple watch to $250 a. Change the Price Elasticity of Demand for the AppleWatch (this requires you to show your work, calculate the number and explain the results of the Price Elasticity of Demand-in effect, how much to it increase demand)? b. Calculate this price reduction on Total Revenue (what is total revenue if the price is $250). Note-use the demand function to calculate quantity demanded. b) How would increasing the advertising budget from $15,500 to $20,000 impact (use the original price from the paper and this requires a calculation and a numerical answer) a. Quantity Demanded b. Profitability Can you solve this please?

[@navimajhurry7079]

For the demand function Q = 10P 0.5 i. Find the elasticity of demand. ii. Find the marginal revenue function. iii. Find the relationship between marginal revenue and elasticity of demand.Explain please someone helpp

[@islamfathi2184]

if price increase about 20% what will happen for the consumption

[@sondao8495]

Thank you for the video, you're doing God's work!

[@narzeg]

i did not understand why did p change by 1

[@harijo4200]

You are life saver buddy

[@FreeEconHelp]

Glad it helped!

[@epikTm]

Very clear and precise, Thank you.

[@walidamin1035]

That was really a beautiful explanation.Thanks for your good work😇

[@彭逸洋-n9j]

Why is 100 the price? Shouldn’t it be the quantity?

[@nadiaismail939]

its really help full, Thanks a lot...

[@logical9582]

Thank u so much sir.....it really helpful for me .....plz help me in:- P.Ed =? , if Q= 100-4p-2p2 , at a price of 5

[@rdnsls949]

Isn’t it Arc elasticity?

[@trantrungduong2458]

Super helpful, thank you !

[@avinashkour9966]

Gud explain sir 👍👍👍👍thnxx

[@FreeEconHelp]

Glad it helped!

[@pallavipawar6341]

Nhi samza muze wo -50 kaise aye plz or explain karo plz sir

[@YuLi-bc8qf]

YOU SAVE MY LIFE

[@saiemjalilTV]

Formula: Percentage Change In Quantity Demanded Divided By The Percentage Change In Price. Use the Formula Change Divided By Original Multiplied by 100 to the Numerator And The Denominator. Eg. As Price goes up from £100 to £150, Quantity Demanded drops from 5000 to 3500. For QD you do 5000 - 3500 which is 1500 divided by 5000 (original) multiplied by 100 which is 30 (Numerator) For Price 50 (change) divided by 100 multiplied by 100. answer 50 Finally 30 Divided by 50 = 0.6 Ta da

[@vindhyagowda9553]

It's really gudd...thank u so much for this video

[@plusECON]

No - you actually need to use the absolute value. There's more on that on my channel or this video: /watch?v=t4t7VJ_hY6M

[@profusionfitness]

This was helpful thank you !

[@pizzasryummy]

Thank you so much. This is really helpful. :)

[@xmf-entertainment3101]

Thanks very much... I'm studying in the last minute😂

[@danielleach356]

God bless you

[@linashokry9847]

THANK YOU!! Super awesome and helpful :)

[@JohnsonWullie-t7n]

Thanks for just saving my life 😂❤

[@therealnewlite]

Thank YOU!

[@FreeEconHelp]

You're welcome, hope it helped!

[@AaveryNelson]

Thank you! That helped soo much!

[@kristenzhou5134]

thx~ I am going to have the exam

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totally clicking...thanks for the help!

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[@FreeEconHelp]

Glad to help!

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it was an example

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[@erriort]

Lost... Wtf? I can't get this!

[@FreeEconHelp]

Sorry it couldn't help, hope you find the answers you need!

[@ayushijindal9892]

ty sir

[@naika1011]

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