Price elasticity of demand measures the responsiveness of demand to a change in price. see: Price elasticity of demand
Price inelastic – a change in price causes a smaller % change in demand.
Price elastic – a change in price causes a bigger % change in demand.
Examples of price inelastic demand
We say a good is price inelastic, when an increase in price causes a smaller % fall in demand, e.g. if price of petrol falls 30%, but demand for petrol…

# elasticity

# Difference between Point and Arc Elasticity of Demand

When calculating elasticity of demand there are two possible ways.
Point elasticity of demand takes the elasticity of demand at a particular point on a curve (or between two points)
Arc elasticity measures elasticity at the mid point between the two selected points:
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# Price Elasticity of Demand – Short and Long Run

Readers Question: the Elasticity of demand for good is likely to be greater in the short run than in the long run true or false?
Elasticity of demand measures the responsiveness of demand to a change in price. See: Price Elasticity Demand
Demand is price inelastic if a change in price causes a smaller % change in demand. This gives a low PED <1.
Demand is price elastic if a change in price causes a bigger % change in demand. This gives a high PED >1
Elasticity of Demand in Short Run
In…