HOW TO Calculate the Own-Price Elasticity of Demand | Economic Homework | Think Econ

[@Niko-wl4gs]

no cap, up there with ACDC ECON, I enjoy how you actually show how to do it. Maybe just make a separate video with more examples? Love the work !!!!

[@ThinkEcon]

Wow! Huge compliment since I gotta respect Mr. Clifford as the GOAT. I've got some other (more recent) videos on examples of elasticity of demand and elasticity of supply on the channel if you want to check them out!

[@carlanavarrofernandez5021]

all your videos are amazing, thanks for making them !!! super useful

[@ThinkEcon]

Thank you so much for the kind words! I'm glad you're finding them helpful :)

[@neeraja4635]

Q: find own Price elasticity of demand when 5% increase in price causes 5% increase in expenditure on the commodity. Please answer this question with explanation

[@ThinkEcon]

First let me ask you, are you absolutely sure that the question states that there was an INCREASE in both price AND expenditure? I am asking because the Law of Demand states that as price increases demand will decrease as they are inversely related. (There are exceptions though, for example, the good is an inferior good) Please check to make sure what you have asked is correct. If it is, I can write out an explanation on how to calculate the Elasticity.

[@mohankasim6464]

Thank you my brother my alleh bless you from Somalia ilike it thank you

[@ThinkEcon]

You're welcome!

[@imperia_alvarez]

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[@francereale86]

203 more subs and you're at 1k!

[@ThinkEcon]

Slow and steady wins the race!

[@francereale86]

Did we talk about fighting inflation when the country is changing its currency from for example Croatian kuna to Euro? I heard buying gold is good exchange to save up the most since Croatian kuna is losing its value

[@ThinkEcon]

This is a very unique topic, with plenty of variables to consider, but long story short, yes, investing hedges away most of the risk of losing money due to inflation!

[@mohammedatharulhaq2795]

I like your videos and I have subscribed to your channel as well but i don't hit the like button for that forgive me please. ❤

[@hilwaamanamankiyar-pp5bf]

USA

[@redwings02]

Isn't the fact that both elasticities are different the reason we use the midpoint method?

[@ThinkEcon]

The short answer to that is yes. However some curriculums do not teach the midpoint method, whereas the % change formula will be taught in all curriculum, making it more universal. Elasticity being greater, less than, or equal to 1 teaches the same principle for elastic, inelastic, and unitary elasticity, which is the same premise as the midpoint method

[@redwings02]

@@ThinkEcon Thank you! Would you ever do a video on how to estimate the own-price elasticity of demand for an entire demand curve?