Price Elasticity of Demand

Micro – Elasticity

In this course, Professor Subhasish M. Chowdhury (University of Sheffield) explores the topic of Elasticity. In the first module, we look at Price Elasticity of Demand and how we calculate it. After this, we look at the different types of Price Elasticity of Demand. Then, we explore the connection between Price Elasticity of Demand and revenue. In the next module, we explore the different factors that influence Price Elasticity of Demand. Then, we look at why the Price Elasticity of Demand matters when governments impose taxation on a market. In the sixth module, we explore Cross-Price Elasticity of Demand and how we calculate it. In the penultimate module, we look at Income Elasticity of Demand and how we calculate it. And in the final module, we look at Price Elasticity of Supply - how we calculate it, its different types, and the factors that influence it.

Price Elasticity of Demand

In this module, we look at Price Elasticity of Demand and how we calculate it. In particular, we will focus on: (i) how Price Elasticity of Demand can be defined as to what extent a change in the price of a good will cause the quantity demanded of that good to change, holding all other things constant; (ii) how we calculate Price Elasticity of Demand when we know both the percentage change in quantity demanded and the percentage change in price; (iii) how we calculate Price Elasticity of Demand when we don't know the percentage change in quantity demanded and the percentage change in price; (iv) how we calculate Price Elasticity of Demand using a Supply and Demand diagram; (v) why Price Elasticity of Demand is always negative; (vi) why Price Elasticity of Demand (and Elasticity in general) is always unitless; and (vii) the meaning of 'arc elasticity'.