Price elasticity of demand using the midpoint method | Elasticity | Microeconomics | Khan Academy

In this video, learn about calculating the price elasticity of demand using the midpoint method (also called the arc elasticity method).

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[mujahidsyed]

It's crazy. I come to this dude for physics and chem and now i'm here for econ and even art history. Dude is unreal!

[RankaNikunj]

For those who are asking why our method differs for his. Here's the answer
There are two ways of calculating PED( price elasticity of demand)
1) *Arc elasticity*
2) *Point elasticity*

This this video, he did using arc elasticity, which uses *averages* in denominator.

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[venybzz]

Hey there my friend, thank you so much for your videos. They are really good for beginners to understand basic stuff. I want to ask about the the average formula you are using for elasticity. You explained that your are doing this in order to have the same result for A->B & B->A. But, doesn't matter that result is different number when you use the average formula and the "original" one? Or, is about elastic or inelastic and number doesn't really count. For example, from A->B E=2, so it is >1.

Also, do you have any video for income elasticity?
Thanks in advance

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