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Price Elasticity of Demand (PED) - Point PED & ARC PED Formula w/Mid-Point Formula - Microeconomics

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http://www.subjectmoney.com http://www.subjectmoney.com/definitiondisplay.php?word=Price%20Elasticity%20of%20Demand In this lesson I am briefly teaching the formulas behind price elasticity of demand. I teach the point price elasticity of demand formula and the ARC price elasticity of demand formula which contains the mid-point formula. I also cover what the values mean. A PED greater the 1 is inelastic, a value less than 1 is elastic and a value equal to 1 is unit elastic. The goal is to have a ped of 1 which is the price where revenues will be maxed. Please don't forget to subscribe, rate & share our videos. Please also visit our websites at http://www.subjectmoney.com & http://www.excelfornoobs.com. https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=8a6zADgZM9s http://www.roofstampa.com hjttp://roofstampa.com http:/www.subjectmoney.com http://www.excelfornoobs.com
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Text Comments (15)
Francisco Morais (4 days ago)
congrats man! excelent video!!
Sheila Afiah (1 year ago)
copilotsb (1 year ago)
Three minutes ago (before I watched this video) I was 100% convinced there was no way I was going to pass my Econ class. THANK YOU. I finally got it! Your video explained it in a way that made sense to me. I just got it right on my homework (it's online so I get the answers immediately) THANK YOU!!! I will be sharing this link with the rest of my class.
alan kam (1 year ago)
The calculation of arc elasticity is clear and concise. It is exactly the method needed under the HKDSE Economics syllabus.
kendalljazz (2 years ago)
This is great and all but how do I find the price elasticity at 1 particular point. You explain how to find the elasticity from A to B. How do I find the elasticity at just point B
Rhonda K. Martin (3 years ago)
Why do nurses need economics? I am perfectly content being an uneducated consumer. Thank you for this tutorial with any luck I might pass my ECON class and actually get my BSN.
Chris Huynh (4 years ago)
A simpler way to calculate elasticity is %Change in Q / %Change in P simply take the magnitude of change in the number, and divide it by the original. If the price changed from 10 to 8, the change in price is 2. Divide this change by the original (10) and your change in price is 20%. This percentage change will be identical if the price changed from 10 to 12. Correct me if I'm wrong, I'm a first year econ student.
cast fom (4 years ago)
tp students...LOL
Jasmina C (4 years ago)
1/9 = 0.11 ????
abeerhoor (10 months ago)
multiply 0.11 by 100 to get the percentage
Aston Margolis-Dias (5 years ago)
too wordy telling me about negatives threw me off when honestly if you work the problem with logic before that you'd just end up with negative and wouldnt have to be told HOWEVER the unit elastic definition did indeed help.
Dick Green (5 years ago)
Great video! Clear and concise. I'm still needing to learn how to plot points on the curve. If you can discuss that in the future, I believe it would be a great asset. I'll check around to try and find it. Thanks.
reuben mentz (5 years ago)
I'm a bit confused, when do you use the mid-point formula? what is the use of the PED formula if the mid-point formula can do everything and more than the PED formula?
Subjectmoney (5 years ago)
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Subjectmoney (5 years ago)
Hey guys please comment on this video. Any interactions such as commenting, rating, sharing and adding to your favorites increases our ranking on Youtube

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