APMic Unit 2 Lesson 3 Elasticity (Modules 46-48) by jclerch https://padlet.com/jclerch/qu82q2v6pw7i Supply and Demand en-us 2016-10-03 22:54:45 UTC 2025-03-23 03:58:37 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/68cfda7ee9d5331778378ab67557306f/IMG_12291_1mb.png jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/128040946 2016-10-04 01:36:06 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/128040946 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/179962285 2017-08-02 16:27:07 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/179962285 Price Elasticity of Demand jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/180152675 2017-08-04 22:06:25 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/180152675 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/180380691 2017-08-08 15:36:49 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/180380691 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/180733924 2017-08-11 13:53:01 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/180733924 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/229273643 2018-02-07 18:59:44 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/229273643 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183063 2018-09-02 22:45:09 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183063 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183089 2018-09-02 22:45:36 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183089 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183137 2018-09-02 22:46:16 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183137 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183171 2018-09-02 22:46:43 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/277183171 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/360995586 2019-05-16 21:58:15 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/360995586 Essential Knowledge jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/372200788 Economists use the concept of elasticity to measure the magnitude of percentage changes in quantity owing to any given changes in the own-price, income, and prices of related goods.

Price elasticity of demand is measured by the percentage change in quantity demanded divided by the percentage change in price or the responsiveness of the quantity demanded to changes in price. Elasticity varies along a linear demand curve, meaning slope is not elasticity.

Ranges of values of elasticity of demand are described as elastic or inelastic with the separating benchmark being a magnitude of 1, where the change in the price and the change in the quantity demanded are proportional.

  • When the magnitude of the value of elasticity is greater than 1, the demand is described as being elastic with respect to that price in the range of the given change.

  • When the magnitude of the value of elasticity is less than 1, the demand is described as being inelastic with respect to that price in the range of the given change.

  • When the magnitude of the value of elasticity is equal to 1, the demand is described as being unit elastic with respect to that price in the range of the given change.

The price elasticity of demand depends on certain factors such as the availability of substitutes.

The impact of a given price change on total revenue or total expenditure will depend on whether demand is elastic, inelastic, or unit elastic.

Price elasticity of supply is measured by the percentage change in quantity supplied divided by the percentage change in price, or the responsiveness of the quantity supplied to changes in price.

Ranges of values of elasticity of supply are described as elastic or inelastic with the separating benchmark being a magnitude of 1, where the change in the price and the change in the quantity supplied are proportional.

  • When the magnitude of the value of elasticity is greater than 1, the supply is described as being elastic with respect to that price in the range of the given change.

  • When the magnitude of the value of elasticity is less than 1, the supply is described as being inelastic with respect to that price in the range of the given change.

  • When the magnitude of the value of elasticity is equal to 1, the supply is described as being unit elastic with respect to that price in the range of the given change.

The price elasticity of supply depends on certain factors such as the price of alternative inputs.

Elasticity can be measured for any determinant of demand or supply, not just the price.

Income elasticity of demand is measured by the percentage change in the quantity demanded divided by the percentage change in consumers’ income. Economists use the income elasticity of demand to determine whether a good is normal or inferior.

Cross-price elasticity of demand is measured by the percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. Economists use the cross-price elasticity of demand to determine whether goods are substitutes, complements, or not related.
]]> 2019-07-24 22:10:08 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/372200788 Enduring Understanding jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/372201022 Individuals and firms respond to incentives and face constraints.]]> 2019-07-24 22:14:12 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/372201022 Learning Objectives jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/372201074 Define measures of elasticity.

Explain (using graphs where appropriate) measures of elasticity and the impact of a given price change on total revenue or total expenditure.

Calculate (using data from a graph or a table as appropriate) measures of elasticity.
]]> 2019-07-24 22:14:49 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/372201074 Questions jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/372201198
  • What is the definition of elasticity?
  • How is the price elasticity of demand calculated? 
  • What are the determinants of price elasticity of demand? 
  • What is the relationship between elasticity and total revenue? 
  • What is the difference between elastic and inelastic demand?
  • How does the price elasticity of demand change along a demand curve?
  • What are the factors that determine price elasticity of demand?
  • What does the cross-price elasticity of demand measure?
  • What is the meaning and importance of the income elasticity of demand?
  • What is the significance of the price elasticity of supply?
  • What factors influence the size of these various elasticities?
    • ]]>     2019-07-24 22:17:12 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/372201198     jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/372419083 2019-07-27 00:26:50 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/372419083 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/372422807 2019-07-27 02:04:01 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/372422807 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693484008 Price Elasticity of Demand]]> 2020-08-23 18:44:11 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693484008 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693484112 Price Elasticity of Supply]]> 2020-08-23 18:44:20 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693484112 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693484405 Other Elasticities]]> 2020-08-23 18:44:49 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693484405 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693496894 2020-08-23 19:08:53 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693496894 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693497017 2020-08-23 19:09:06 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693497017 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693497105 2020-08-23 19:09:16 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693497105 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693542431 2020-08-23 20:33:40 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693542431 jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/693542522 2020-08-23 20:33:52 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/693542522 Elasticity and Total Revenue Explainer jclerch https://padlet.com/jclerch/qu82q2v6pw7i/wish/738761255 2020-09-11 14:16:43 UTC https://padlet.com/jclerch/qu82q2v6pw7i/wish/738761255