Perfect inelasticity and perfect elasticity of demand | Microeconomics | Khan Academy

Extreme examples of price elasticity of demand

Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course

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[Sarah-qkyq]

Insulin prices per vial are now about $300 in the US despite only costing about $4 to produce, thanks to pharmaceutical manufacturers taking advantage of the perfect inelasticity.

[hongkaren]

crystal clear. I read a book for 1 hour, and I am still confused. this video makes me understand in 10 minutes.

[draculanova]

One of the best Khan Academy videos I have watched

[VKDiaries]

Thanks, this was helpful in simple words.

[stefania]

literally just have to watch your videos and I instantly get it!?

[anthonyiacono]

I have a question. If you are calculating the elasticity of demand, how large of a sample size do you actually need? I notice he took a sample of 100 people that need insulin, so I'm just curious when a sample size is large enough to start understanding the trends.

[Onozitsthpopo]

Ugg gave me flash backs to microeconomics

[byMarto_com]

Very nice explanation, teachers should watch your videos and talk to their students like you.

[adityadubey]

Very well explained Sir especially with the example !
Respect from India !

[BurkeyAcademy]

@ShwangShwing This is not something we do in general, just in this case. Alfred Marshall (1842-1924) derived the idea of the demand curve by {basically} arguing that as Q increases, your willingness to pay goes down. So, in his mind Q was the independent variable. :)

[tzdcnkf]

thanks a lot. I was looking for an explanation with examples!

[Awokenify]

Physics applied in economy. I have now seen it all.

[bombo]

The average is 3 for the first example, not 2.50

[saumyashreeparida]

If you are confused with the average part then you can use another formulae to compare elasticity at any point on demand curve
Suppose the point in the vdo is C
Then Ep @ C = lower segment/ upper segment
This helps you to compare any 2 points on demand curve for elasticity.
Hope this might help you ☺

[history]

thank you bro for tell me that video for kids at schools today

[LinuxEver]

Thank you so much for these examples, it clears a lot.

[judeshosein]

Very helpful thank you very much, i am actually able to relate what is in my textbook to these videos perfectly !!!

[wrsel]

@samthewildone The movie described a situation (initially) where regardless of price, Qd will be the same. His entire point is that, depending upon the nature of the good, the demand curve will have a different shape and/or slope.

[LaineCusi]

At 5:10 he wrote "does not change" when he should've wrote "shouldn't"

[vardhannegi]

demand of coke in summer is higher then in winter without any change in price of coke...this is a easy example for perfect elasticity