How to Calculate Price Elasticity of Demand

[@dinoantoski468]

Sir i dont write comments but let me tell you your 84 hours of work saved us months of headache and stress and for that i am thankful

[@sebastiancordero4301]

let me tell you, I usually don't post any comments, but you deserve it great job! you literally helped me pass my test !

[@economicsfun]

Sebastian Cordero Appreciate it that you took the time to write me. I spend a lot of time making these videos and it is always great to hear that they are helping. Good luck on classes too.

[@EnglishCareerCoach]

Amazing work sir. I appreciate the massive effort you've put into these 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. Besides the technology I use, I have done a tremendous amount of research on how students learn via animations and the impact of color and narration.

[@simongiagu7885]

This video has helped me so much thank you Post more

[@Celdorsc2]

I think Adobe After Effect would definitely help you to greatly shorten video production time. One of many features Adobe After Effect uses is a mask that can be alter over time. Additionally, all objects created in Adobe Illustrator can be easily imported into After Effects as references; not sure about earlier versions though. If you can afford it, I would definitely recommended this software. It would massively increase your video production, which I personally found extremely helpful :)

[@economicsfun]

That is a very good question. The numbers are only meaningful for comparison purposes only and it measures how a change in price impacts quantity. As price falls from 10 to 9, Price Elasticity of Demand (PED) is 10 and as price falls from 9 to 8 PED = 4.5. In other words, quantity goes up about twice (10 / 4.5) as fast when price falls from 10 to 9 as it does when price falls from 9 to 8. Make sense?

[@sajedkhan3576]

very well explained sir.

[@economicsfun]

Thanks for the compliments. If you simplify the equation using algebra you will see they are the same equations. I probably should make a video on this because several students have asked about this as well.

[@economicsfun]

Good question. Where supply and demand intersect is not always going to unit elasticity. The supply curve can cross the demand curve at any point. Make sense? Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.

[@joymccracken1939]

Excellent!! Thank you soo much! I get it now!!

[@upmikdpm]

Thank you very much for the tips and presentations.

[@nessagotdrip]

thank you this helped

[@economicsfun]

I will definitely check it out. I subscribe to Adobe Creative Cloud and After Effects is one of the products listed. Looks like you are a big time gamer... "Play More Videos Games Study Less!"

[@saviorodrigues7852]

Thanks 😊

[@alexfreeburn8902]

do you have to keep the minus, if it comes with an answer of -0.2, could you put 0.2 and still be right

[@simongiagu7885]

When calculating the PED why do you convert the negative into positive

[@Celdorsc2]

Yes, I am :) But I am also trying to be good and find time to study even economy :)

[@ganeshkannan8683]

How do calculate percentage please tell me

[@waksibra]

Will there always be unit elasticity in the equilibrium of supply and demand?

[@doofrofthguoht2248]

Aren't you also able to count the ED this way? Q2-Q1/P2-p1 * P1/Q1 ?

[@williamamponsah484]

PLEASE SIR WE HAVE 10 POINTS AS IN PRICES AND QUANTITY DEMANDED BUT OUR P.E.D CALCULATIONS GIVES US UP TO 9 POINTS SO WITH THE 1ST ANSWER WE GOT FOR THE 1ST PED CALCULATION IS IT FOR THE 1ST POINT IE WHERE PRICE IS 10 AND QNTY IS 1 OR IT IS FOR THE POINT WHERE PRICE IS 8 AND QNTY IS 2

[@upmikdpm]

what software did you use to make this presentation ?

[@igorkudryk2199]

its already 7 years, but did you find out :D ? Hello from past :D

[@drewdaniels5331]

wrong equation