Elasticity | Microeconomics | Economics | Khan Academy Unit 3: Elasticity About this unit Why are resold concert tickets so expensive? Why is holiday candy so cheap in January? Learn how supply and demand changes can influences how much things cost, and why the prices of some items can change so dramatically
Price elasticity of demand and price elasticity of supply An elastic demand or elastic supply is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price An inelastic demand or inelastic supply is one in which elasticity is less than one, indicating low responsiveness to price changes
Introduction to price elasticity of demand - Khan Academy Learn about the price elasticity of demand, a concept measuring how sensitive quantity is to price changes Elasticity is calculated as percent change in quantity divided by percent change in price
Price elasticity of demand using the midpoint method Elasticity of demand is not the slope of the curve The percentage part of the equation is crucial Use the formula Sal gives and test it by yourself On a straight line, elasticity will be highest near the vertical axis and get more and more inelastic as you move toward the horizontal axis
Elasticity in areas other than price (article) | Khan Academy In markets for financial capital, the elasticity of savings —the percentage change in the quantity of savings divided by the percentage change in interest rates—determines the shape of the supply curve for financial capital
Elasticity of supply (video) - Khan Academy So we define elasticity of supply, we define it as percent change in quantity over percent The Greek letter delta, this triangle, that's just shorthand for change, percent change in price
Microeconomics | Economics | Khan Academy Unit 3: Elasticity Price elasticity of demand Price elasticity of supply Income elasticity of demand and cross-price elasticity of demand
Cross-price elasticity of demand (video) | Khan Academy In this video, Sal says that we have to take the change over the average of the initial and final values when calculating elasticity, but when doing elasticity of demand and supply we took it over the initial value