price elasticity of demand (calculus)

[@liamstake3276]

I've been struggling how to find point price elasticity starting with an inverse demand function but this video has explained it incredibly clearly! Very helpful!!!

[@EconomicsinManyLessons]

That is great to hear!

[@baldaciousafro9911]

Not all heroes wear capes...bless you.

[@rohansoy2607]

Joyner 🔥

[@EconomicsinManyLessons]

Example 1: if the demand curve is Q = a - bP, then dQ/dP = -b. Example 2: if the inverse demand curve is written as P = a - bQ, then dP/dQ = -b, so dQ/dP = -1/b. In the price elasticity of demand formula, you always use the result from dQ/dP, which is the inverse of the slope of the graphical depiction of the demand curve (where P is on the y-axis and Q is on the x-axis).

[@jcholsap]

That was bothering me also.

[@pathan909]

Help me out

[@pathan909]

Got one question... assume that the price of medicine increases from 10$to 12$ and the elasticity of demand 0.50. The quantity demanded was 500 scripts. What will it be now?

[@XtremeKillah101]

4:04 LOL

[@GalibFida]

man, kids are the best 😂

[@BrownPen_BluePen]

he just casually ignores that, must be normal hahaa

[@rime4479]

lmfao

[@_chege._]

I struggled to understand this topic on my own for hours.... then I saw dQ/dP = -b and my life has officially changed, thank you so much

[@kentjeremiah6711]

Same😂Shit looks easy now

[@EconomicsinManyLessons]

An example with a different functional form: Q = sqrt(3000) - P^2 dQ/dP = -2P Elasticicity = (dQ/dP) x (P/Q) = -2P x (P/Q) Plug in your values for P and Q in the above equation to solve for the price elasticity of demand.

[@sayeedraihan4644]

how these happens...can u plz tell me

[@timwzleung]

4:05 scared the shit out of me LOL

[@SuperNuclearWinter]

Very helpful, you are helping me pass my Industrial organization class, Thank You

[@ryandoran405]

You're a legend, going to pound my maths exam because of you

[@CallistoAshus]

Thanks for the video. Much better than my textbook.

[@lukhelesibisi4061]

One day I'll graduate and send you a cheque (or check in American)

[@abysslumine9975]

have you graduated now

[@azizalbader]

It’s been 3 years :)

[@ImB33]

where that check at boy

[@mohammeddhilber1709]

Have you graduated now? Its 4 yrs

[@debbie9.161]

Lmaoooo you won't

[@EconomicsinManyLessons]

P = 10Q is a supply equation (I'm not sure if that is what you meant). The elasticity of supply is dQ/dP x P/Q (same as the elasticity of demand). If you take the derivative of P = 10Q, you get dP/dQ = 10. But since we need dQ/dP, we just take the reciprocal of 10 and get 1/10. Your answer then is 1/10 x P/Q and pluging in 10 for Q and 100 for P gives: 1/10 x 100/10 = 1.

[@thembareallukhele4732]

Nice work, very easy to understand. Thanks man.

[@smilebro100]

You are the best. Thank you once again 🤝

[@sonamheryan2940]

Very useful video! Had no idea what derivative is before i watched this lol.

[@yourfriendvikash001]

Thank u so much sir .I was very worried about it but now u have solved my problem .And once again thank u sir

[@kuortayi7425]

Bozz, you just make my work easy...bravo.

[@marianwasef3230]

thank you, it was easy to understand .

[@beatriceballardin3001]

You just saved my life, THANK YOU!! Super helpful video!

[@thaiduongo6299]

this video made my day today, tysm

[@amyxst]

shouldn't (delta Q)/(delta P) actually be equivalent to -1/b as opposed to -b? since p is on the y-axis, and q is on the x-axis?

[@kevinwhite2260]

so do we even need to take dervitaves?

[@amandachong6829]

Thank you for the lesson! One suggestion I have is that you may wish to read out all of your equations that you have written down. This would be especially helpful for blind students like myself. Basically, just do what you were doing for the first portion of the video.

[@safar19899]

Very helpful video thanks so much.

[@RAVIKUMAR-ky2rc]

Really helpful👍

[@lila6029]

Thank you so much for posting this video! Really helpful :)

[@jessicabasukie5623]

It's a very helpful video - now I finally understand my problem set!!!! Thank you so much!:)

[@fatalconceit8061]

did u go UoM?

[@rosie_e-o8b]

This is amazing, thank you so much!

[@filoleon0777]

Thank you so much.. your tutorial it has been very helpful

[@Mohammed-et6gw]

thank you some much man, you're a life saver

[@cburakyilmaz4383]

What is the main idea for elasticity of demand or elasticity of supply. I do not understand main idea.

[@ayinalemseyoum4108]

Really thanks for you it's helped me a lot

[@nasdymedia]

very helpful thank u so much.....god bless u

[@Awesome-sh7db]

This was very helpful thank you so much!

[@khushboowadhwa3368]

Thank u so much for this vedio.... This was very good

[@nalinyvelayutham438]

yes..the video is very helpful. thank you very much.

[@stephaniet1308]

this is very helpful wow , thank you so much!

[@basticorrea3278]

what happens when Price is decreased, but demand does not strongly increase?

[@lewistomlins1768]

Cracking video!

[@memakhaan2577]

How do u know that qd/qp = -b where did the a go??

[@soultraveling.7171]

thank you so much im from Pakistan, thanks for helping to solve my assignment

[@jasminecotrich1134]

Thanks so much for your help!

[@kopanomoss5752]

Wats the interpretation?If Ped is a negative when shud it be absolute

[@tarekkaram934]

Thank you so much , this video is very helpful

[@RPS13959]

Thanks, this helped!

[@koko-8657]

i hope you see this. in a case where you are asked to find the range of the price for which demand is elastic. what do you do??

[@halleluyahh]

very helpful....thank you

[@clairew1221]

Very helpful! thank you!

[@dimsum-chaos]

Helpful. Thank you

[@AK.]

Really helpful! Thanks!

[@Princeofsaiyans_comedy]

great video

[@brentso9]

can you do an example with an equation that involves more variables?

[@EconomicsinManyLessons]

This might be helpful: kzbin.info/www/bejne/g6myfp2gm5mhZ9k

[@jenpaul3204]

This microeconomics is frying my brain lol

[@saluu9573]

thanks man, exam tomorrow you certainly saved me some marks.

[@preetypanwar9159]

sir can u plz upload a video solving consumer and producer"s surplus mathematically.

[@CCTSPORTES]

Suppose it was P = 10q ; Q = 10 Would i times slope times the Q/P or the usual P/Q?

[@kundakamilo5483]

This is great

[@mirreazuddin8843]

if pq is equal to 16 then find out price electricity according to demand function*** plz solve it in no time...

[@kundakamilo5483]

Very helpful thanx

[@mr.sthirbabusubedi1502]

6.d. The demand law for family members of a sports club is given by P = 500 e^-0.01Q where P is the monthly fee. Determine the price elasticity when Q = 100. Discuss the case when Q100. solution please

[@victorkam715]

Hello... I am sorry for asking this but what if the demand something like D=√3000-p^2

[@BrownPen_BluePen]

the derivative of p^2 is 2/1

[@studydude9]

nice 🙂🙂📚

[@lingvi4083]

Very helpful, tysm

[@famikeg]

4:04

[@katzman3047]

I cry

[@chinomunoz2668]

Thank you sir!

[@jamaicaboy544]

BRO YOU'RE A FUCKING LIFE SAVER RT

[@arpansigdel7600]

You are now ready to play the part of the manager of the public transit system. Your finance officer has just advised you that the system faces a deficit. Your board does not want you to cut service, which means that you cannot cut costs. Your only hope is to increase revenue. Would fare increase boost revenue? You consult the economist on your staffs who has researched studies on public transportation elasticities. She reports that the estimated price elasticity of demand for the first few months after a price change is about −0.3, but that after several years, it will be about −1.5. i. Explain why the estimated values for price elasticity of demand differ. (2 Marks) ii. Compute what will happen to ridership and revenue over the next few months if you decide to raise fares by 5%. (3 Marks) iii. Compute what will happen to ridership and revenue over the next few years if you decide to raise fares by 5%. (3 Marks) iv. What happens to total revenue now and after several years if you choose to raise fares?

[@lv.qw1007]

Thanks Sir, it really worked out for me but i still confused about how to determine whether the demand is elastic, inelastic or of unit elasticity?

[@gagarine42]

+Lv Qianwen E > 1 => elastic ; E = 1 => unit elastic; E < 1 => inelastic. But you right the video is more about how to calculate than what is elasticity.

[@aam7486]

Thank you

[@anshusingh5396]

sir can you tell me why in straight line when we find price elasticity of demand at point, slope is ∆P/∆Q

[@punaydang2948]

because there is an inverse relation between slope and price elasticity(Ed) Ed=1/slope

[@karolinesheefeni8121]

​@@punaydang2948 thank you,, was stuck at this..

[@Borzacchinni]

holy fuck i love you!

[@synchronizedstereos4148]

1:37 let's get rid of this big meth

[@sakshiawasthi4162]

thanku so much sir..

[@jordantimlin1761]

How do i figure out the price and income elasticity of demand from this equation... ln Q = 8.99 - 3.78 ln P - 1.77 ln M - 2.03 ln PR

[@GalibFida]

Income Elasticity = (dQ/dI)*(I/Q)

[@rafaela1787]

Thank you!!

[@mitdz95]

thank you very much

[@danielmaclean2802]

You're a beauty!

[@carebearswan]

Thank yoyo thank you thank you!!!!!

[@redwanism]

. If the demand function is p = (4 - 5x)^2, for what value of x the elasticity of demand will be unity? please help.....

[@EconomicsinManyLessons]

Redwan Sarker The easiest way to solve this problem is to get total revenue: TR = px = (4 - 5x^2)x. Then take the derivative of total revenue to get marginal revenue. Next, set marginal revenue equal to zero and solve for x. When marginal revenue is zero, demand is unit elastic.

[@redwanism]

1sportingclays sorry I wrote the wrong function it is p=(4-5x)^2 . Okay I'll try your method.

[@BossKiller-sk3nd]

P=100-5x maximum demand (x) & maximum price (p)

[@mariallejandra]

THANK YOU

[@jaceelyniaarquillanoiois3955]

I've got headache with this numbers. how about if you have a formula like this? Ep=Q2-Q1/(Q1+Q2)/2÷P2-P1/(P1+P2)/2=

[@GalibFida]

This is called the arc estimate of price elasticity. use this if you don't know calculus.

[@redwanism]

. If the demand function is p = 4 - 5x^2, for what value of x the elasticity of demand will be unity? help if you know how to solve this...

[@LeCassiopeia]

Hello :) Your Videos are super helpful. Micro Exam is in one week and I'm learning so much. Thank you! One Question: for one of our exercises we just have demand given and we should figure out the price elasticity. We don't get any cost function or any value for p. What would you do if you have this kind of problem? What I did was set Q to 1 an then solve for p. But that seems off to me.

[@shawnk6490]

I'm dealing with this type of question but I have to use a different equation. Mine is Q=D(x)=100^e-0.02x. The formula my professor wants me to use is E(x)=-(x•D'(x))/D(x). Does anyone know where I can find a video that will help me figure out how to get D prime?

[@juliane2387]

Legend

[@rexjunior814]

famtastic

[@wasimasadia4887]

thank u :D

[@Kerii03]

Q=200P-½.... PED?!

[@yanfeizhang789]

lol got it

[@claireharden9995]

heeehee he said meth

[@shubhamverma-uh6sq]

Thank you so much

[@maxwellisabu1408]

thank you very much