Calculating the Elasticity of Demand

Elasticity of demand is equal to the percentage change of quantity demanded divided by percentage change in price. In this video, we go over specific terminology and notation, including how to use the midpoint formula. We apply elasticity of demand to the war on drugs, and more broadly to the prohibition of a good when it has an elastic demand.

0:00 Introduction
0:39 Mathematics of Demand Elasticity
02:55 The Midpoint Formula for Elasticity
05:23 Example Walkthrough
07:27 Elasticity of Demand and Total Revenue
11:59 Practice Question
12:50 Applications of Elasticity of Demand
14:06 Profiting from Bad Times

[JakeRandolphMarketing]

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[Mooyaho]

Very helpful for someone taking a college level online economics class and I have to teach myself everything, now it makes sense.


Edit: Idk why I’m getting responses on this comment so many yrs after making it. I don’t even remember the class I took. It was probably in my freshman yr of university. It was helpful at the time that’s it. It was required of my degree to take economics as a business major. And yes you can probs take this in high school in AP or something idk nor do I care. Like yeah in college you have to take stuff you probably could’ve gotten credit for in high school. I got college credit on history and English classes not science or math. Some classes you can’t get AP credit for. Anyways yeah that’s all I have to say.

[okorogideonikenna]

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[selvinmacwan]

when yield in going down the supply will be less and the price will go up. thus when the price goes up and the demand goes down by just a little we get more revenues and a inelastic curve. Also the reason why the demand will go down just by a little is because the substitute of corn that is soybeans is also not more in supply.

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[leonardoeueueu]

Such clarifying class. Congrats for this great job!

[angelicaplatnauer]

Very helpful for going back to the basics on how to calculate elasticity. Especially for midterms!

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