(00:00 - 00:20) Introduction(00:21 - 01:50) Own-Price Elasticity & Arc Price Elasticity(01:51 - 03:59) Coke Machine Example: How to Calculate Elasticity(04:00 - 04:46) How to Derive the Formula(04:47 - 05:13) Review
Dividing the percent change in quantity by the percent change in price to analyze the relationship between the two economic variables.
The middle point that represents the average of price and quantity when determining price elasticity.
Elasticity of demand when the price of a good changes, keeping all other variables and goods separate.