Social Sciences and History / Unit 13 SSH 1220 short lesson, about 20 seconds
Elasticity as Percent Over Percent
Captions available
The idea
Elasticity measures the responsiveness of one variable to a change in another. Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price; supply's elasticity does the same with quantity supplied. Percentages, so units do not matter.
In practice
Price up ten percent, quantity down twenty: elasticity two.
Where people slip
Elasticity is not slope.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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