How to Calculate Price Elasticity of Demand (PED)

[@economicsfun]

good observation because elasticity and slope of a line are slightly different. This gives me an opportunity to elaborate too. Elasticity is the % change in Quantity divided by a % change in Price. Slope is just change in Quantity divided by Change in Price. Good luck in your classes too.

[@arthurntembula]

I love your patience. You explain all the little details. Thank you. ❤️

[@samanthaforster5341]

i have never in 22 yrs online never commenting on anything even when i really had an opinion but i really want to gratefully thank you for showing me in a few minutes what i am paying $3,000 a semester to learn. Mind you the lecturer has a very thick accent foreign to the students native language. So please more economics please! students

[@saifur49]

Its now crystal clear , no need to watch it again. Thanks ...You are the man...

[@austuber4320]

you are a God, you are the difference between me passing and failing on PED questions

[@kellijones7733]

I am only one minute into this tutorial, but your video quality, voice clarity, and detailed explanations are outstanding. Others should use this video as goal.

[@braydendaglish3492]

Just want to let you know that your hard work and efforts are not going unnoticed. This has been a massive help for struggling economic students such as myself. You my friend are a legendary robot

[@BeulahGJ]

The best econ-Teacher ever!!!

[@MelissaLatulippe]

Thank you so much for taking the time to explain the formula for change in price and qty as well as to arrive to the Price Elasticity of Demand. I am in my Junior year of college and in Microeconomics, and I was stuck until I watched your tutorial. I really appreciate your time with the subject matter very much. Thank you!

[@buhkangliwayway]

One of the few business tutorials who uses great visuals. Thanks! :)

[@economicsfun]

10521577A You are very welcome. I have thought for a long time that economics lends itself to animations and visualization. Thanks for taking the time to let me know my videos are helpful. If you get a chance like, share the videos (and www.Facebook.Com/PartyMoreStudyLess). This will help others find the videos. Good luck in your studies too.

[@buhkangliwayway]

Economicsfun what graphic software did you use? Or was this pre-recorded?

[@njoy327]

Best Economics study videos on KZbin!!!! Thank so much for all the time, effort, graphics, and organization of material!!!!!!!!

[@AaliyaKhan]

i love how everything is comprehensible and different colors! thanks so much for all the hours you put in!

[@wanzenix]

Thanks man. I thought I understood it before, but now its so clear!! I think you saved my exam!!

[@Queenbeatrice53]

I like this one, the voice is clear and he touch all points!

[@MauroALopez13]

Trying to get my mind around this for a tax revenue course. This video helped tremendously!

[@utopiatech8144]

one of the best educational vids of microecon I have seen, specifically for the elasticity of demand and in the composition and presentation of the information, continue to do what you are doing sir.

[@khanbaboo9522]

ohh sir out standing i should watch your vedios and may be your vedios increase the slope of my absent in the class because no need for the Professor lecture

[@arjun1951]

A very convincing method of teaching measurement of elasticity of deamand.

[@ryanprime2657]

I very very appreciate your lecture, i like the most with your example. Many thanks! i am learning the Managerial economic, so this help me alot.

[@jojuna99]

I learned more from this video than I did in the past 2 months from my teacher. Thank you for this blessing lol.

[@nicoledemers8883]

Thank you for not rushing through this and taking your time. Crammed this in before my final. Glad I did! Lol you may be the only reason I pass 💗🤣

[@superbrain99999]

I'm a slow learner and my teacher moves too fast, so I'm glad you have this here for us dumb people, thanks.

[@economicsfun]

Great observation! Typically, economics textbooks and economist drop the negative sign (sorry about that and that is very confusing) because it is "implied" all values are negative. That being said, your observation is the same when you drop the negative sign. Inelastic 0 to 1 Unit Elastic = 1 Elastic values greater than 1 I do mention this in the video (briefly). I should point this out and be more explicit about dropping the negative sign. Great observation!

[@hashemfatahi9937]

who ever you are, thank you very much for this super Excellent ,clear explanation. I salute you!

[@economicsfun]

Thanks... I have been working on this visual explanation for math, econ, statistics for a few decades now.

[@JoeBrown444]

you're an amazing person for making these videos. thank you so much.

[@economicsfun]

It is always a struggle to determine the amount of detail to provide. I try not to skip any steps so students can see exactly how I come up with the data. I hope you were able to fast forward through this part of the exercise.

[@210889amit]

This helped me very much! Concept explained very clearly.

[@economicsfun]

+Amit pal You are very welcome! If you get a chance like and share the videos and especially like my FB page (www.Facebook.Com/PartyMoreStudyLess), It will help others find the videos.

[@economicsfun]

I use a variety of different software including photoshop, illustrator, HTML5, Final Cut, GarageBand and a few other products. Each video takes me a long time to create. My rule of thumb is each minute of video takes about 12 hours to create, so a 7 minute video takes me about 84 hours of development time.

[@economicsfun]

The biggest tip I can give you is don't try to put to much into an individual excel cell. I would recommend having only one calculation per cell instead of trying to have a bunch of parenthesis.

[@tdmssoares]

This video made me easy to understand this matter. Congrats

[@economicsfun]

Tiago Soares Thank you for writing me and letting me know my videos are helping you. Appreciate that! Hopefully you will like, share, subscribe, If you get a chance could you please like our FB page. www.FaceBook.Com/PartyMoreStudyLess It will help others find the videos.

[@Hermoshaful]

Wow, I got it clear finally. Great Economics teacher, love the graphics btw! Good job

[@economicsfun]

Well thank you and that is good to know you think this is the best video on the topic!

[@bggunny6895]

that was a better explanation than my textbook!

[@Cangirl94]

how I wish my econ teacher was as good as you!!

[@island.260]

you are absolutely great! thank you very much for your efforts. it is was very clear and easy to understand.

[@economicsfun]

Islan Dzhusupbaev You are very welcome. I always appreciate hearing my efforts are helpful

[@robetflitchell9437]

I never saw anything that was super fun on one of these slides before, but then the professor told me to party more so I am gonna do it! ;)

[@economicsfun]

Great to be of service. Good luck on your exam.

[@economicsfun]

Thank you! I have channel on statistics (statisticsfun) and algebra too. Good luck in your classes and happy to hear that the videos help.

[@rachaelanders9263]

you are literally my hero

[@fiyoareeameen]

Thank you very much. This video helped me a lot.

[@travisramirez]

AWESOME ILLUSTRATIONS!!!! I need this in my class

[@wandadiggs4551]

This was very helpful. Thank you!

[@economicsfun]

That is great to hear and I do appreciate it as well. Good luck in your studies too.

[@economicsfun]

Great question! From a practical perspective this data could be collected via surveys or past sales figures. From an academic perspective the data is typical given in the problem.

[@gretchin3000]

so clear. A M A Z I N G graphics. Thank you xxxxx

[@TheAlcatrazz100]

thumbz up Sir you helped me develop my understanding for economics lmao.......... thnx thnx thnx

[@economicsfun]

Thanks and luck in your classes too.

[@economicsfun]

I have always thought animations help with learning economics, good to hear my videos are helping you.

[@hammerhead19able]

You explain it so well. Thank you.

[@economicsfun]

Jenny, Right or wrong, in economics the negative sign is often disregarded. The reason is that the slope of the line is negative and can be seen as such. Hope that makes sense. Not the best answer, but that is the way it is.

[@economicsfun]

That is a great observation! If quantity changed and price remained constant, then we have to conclude something other than price of the good cause the change. The math does not exactly make sense. Thanks for your observation.

[@iftekmahmud]

Really nice video however Sir I think we're supposed to take the average of the two numbers in the denominator?

[@tsakanimaphophe7124]

thank u so much,now i understand it. GOD blss you

[@UsamahMughal]

What tool did you use in this video? I liked it for sharing knowledge or explaining concepts. Thanks.

[@mbosaz]

Very nice video an explanation. What happens if the price do not change but the quantity does? Then Price % change will be zero, so division will not give a result. Thanks for your help.

[@POLlyy23]

Thanks a lot! It seems so easy now that i finaly get it.

[@justinmalebe2187]

Wow you made it all so simple thank you

[@rxfidem1728]

This has been very helpful, thank you!!!!!!

[@antoroma009304]

thank you very much... this is so clear... keep it up

[@tuluvota]

duh....it makes much more sense now....thank you.....

[@mabuherra]

Thanks a lot for making this nice tutorial...... bless you :)

[@economicsfun]

mabuherra You are very welcome. If you get a chance like on FB (www.FaceBook.Com/PartyMoreStudyLess), share, like the videos, and subscribe. It helps others find the videos.

[@economicsfun]

@wendysuck In the end the negative sign is removed for convenience and hopefully ease of understanding. The PED is always "negative" but often the sign is removed so we can easily compare PED at different levels. This makes it easier (hopefully) then if PED less than 1 it is inelastic and greater than 1 PED is elastic. It may be confusing if there were negative signs too.

[@winderkent]

Hi, Your videos are great! Do you have any videos on Mid Point Formula?

[@rosiezimmer9294]

Thanks so much - its much clearer now

[@TheMadlist]

very very useful..! very detailed. Thank you !

[@arimax888]

thank you very much for taking the time to explain this ^_^

[@economicsfun]

You are welcome! And I appreciate the feedback.

[@nanachan7698]

i really like how u explain. thnx ^^

[@economicsfun]

Jini, make sure you do the calculations step by step. 3 - 2 = 1... divided by 2 = .5. Same with the denominator, 8 -9 = -1 divided by 9 = .11 (don't worry about the negative. Now .5 divided by .11 is 4.5. Make sense?

[@elioriseli2312]

Well done, but in computing elasticity, we always use the midpoint formula. This will help to get the same elasticity value whether the price rises or falls. Using the original formula of percentage change does not provide this consistency in the elasticity as done in economics. So, one should have ((4-3)/([4+3]/2)) *100 for the % change in the quantity and then do the same for the percentage change in the price to get |2.14|

[@enzoromano1232]

You are a genius

[@tobychang8250]

Thank you very much! I got exactly what I want!

[@economicsfun]

Wow thanks! For a break from all the educational videos make sure to visit and like MyBookSucks on Facebook. You can find the link in the description of the video. MyBookSucks FB is meant to be fun and humorous. Thanks again and good luck in your studies.

[@economicsfun]

All these numbers depend on the product we are looking at or examining. Some goods are very sensitive to changes in price like gasoline (petrol). A small drop in price causes everyone to run to the pumps and fill up their tanks. It is important to note that my numbers are hypothetical too. I am only trying to show you how to make the calculations. In real life (or in practice) you would not see such a smooth revenue curve. Hope this helps. Do ask for more clarification if you need it.

[@BlackenedAngelArtist]

Thanks, best video on this.

[@JiniReddy]

Hi there, thank you so much for your tutorial, they are super super helpful. I just have a question, when i am punching in the numbers that you have when calculating PED, i get different figures if i take 3-2/2*100, i get -97, where am i going wrong, and how did you get to .5 and .11. Thank you once again.

[@GingerBlack001]

thanks for the awesome recap!!

[@kemalakgol8166]

so thanks for lectues and lessons...

[@wlsonron]

Thanks much. Very helpful

[@badger_939]

your video is very helpful but can u make like pdf/ file to make like exerciser/question about these topic... so we can practice and understand more.. thx

[@ounda2011]

i love to learn from here than in class

[@economicsfun]

I would think want to calculate income elasticity of demand. It is calculated very similar, but you want to determine how an increase in income impacts demand. The formula is the %Change in Quantity / % Change in Income. OR (Q2 - Q1)/Q1 divided by (M2 - M1)/M1 where M = IncoMe. Make sense?

[@jhonnykokos8522]

a lot of thanks for your video!!!!!!

[@Gagan1166]

Thanks. Great Presentation :)

[@economicsfun]

Gagan1166 You are welcome. Make sure you like MyBookSucks Facebook Page (www.FaceBook.Com/PartyMoreStudyLess) it will help others find my videos.

[@knight2battle]

Lovely! Thank your very much!

[@nfermie]

Hi Economicsfun...your videos are grt....... Could you help me solve this demand function Qd=650-5P-P2 Where P=10

[@economicsfun]

I plan to! I feel as tho I am just starting out.

[@SOSTacoJohnson]

@9:41 --- Priceless.

[@abdirizack9169]

thanks bt sir .how did u get .5 for the first time

[@economicsfun]

Good to hear and good luck in your exam and class. Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.

[@lunalovekiss_]

Please help!! I understand the formulas, but how come when I try to do it on my calculator, I get different results every time???

[@economicsfun]

Great to hear. Make sure you like MyBookSucks on Facebook (see link in video description). This will help other students find the videos too.

[@CastilloAlmita]

Thank you so so so much!! :)

[@economicsfun]

Well... since elasticity is the change in y over change in x, then an infinite elasticity is where x2 = x1. This means that regardless of y (or price) then x does not change -- right. Imagine surgery for your child, regardless of price you are going try to have the surgery completed. Make sense?

[@economicsfun]

You would be right!

[@anoilc2]

hi..im a first year economics student... i was taught that unit elastic =-1, inelastic between 0 & -1, and elastic from -1 to infinity.... does it differ on your side of the atlantic ? confused!!

[@economicsfun]

You are very welcome! Make sure you like MyBookSucks on FaceBook (see link in video description). This will help other students find the educational videos.

[@economicsfun]

Thanks! Appreciate that.

[@32jerell]

Awesome...

[@economicsfun]

You are very welcome. Make sure you like MyBookSucks on FaceBook (see link in video description). This will help other students find the educational videos.