# micro2

More Options: Make a Folding Card

#### Storyboard Description

This storyboard does not have a description.

#### Storyboard Text

• Oh ya! then what is the graph for change in demand?
• So when decrease in  demand falls it left from D to D2 while increase in demands it will shift to right from D to D1.
• Price
• D2
• D
• D1
• Quantity
• There's still anything else?
• Of course, there's still a lot to catch up!So here it is. Price elasticity of  demand (Ed) is a measure of the responsive of quantity  demanded to change in price.
• I remember this! so there are 3 degree of  responsiveness. 1)  Change in quantity demanded is larger than change in price (% Δ Q > % Δ P)Demand is elastic/ relatively elastic.2) Change in price is larger than change in quantity demanded(% Δ Q < % Δ P )Demand is inelastic/ relatively inelastic.3) Change in price is same as change in quantity demanded(% Δ Q = % Δ P )Demand is unitary elastic.
• Yeap that right!
• but how we calculate it?
• So we can calculate the degree of elasticity by elasticity coefficient. The formula is
• Ed=
• Ed=
• *PS negative sign (-)  in the answer is ignored
• P2 - P1(P2 + P1) ÷ 2
• Δ   QQ
• Q2 - Q1(Q2 + Q1) ÷ 2
• Or
• ÷
• Δ   PP
• How we differentiate the price elasticities with diagram?
• OK. so if,- elasticity = 0 (perfect inelastic I vertical)-elasticity < 1(relatively inelastic I steep)-elasticity = 1 (unitary elastic I hyperbola)-elasticity > 1 (relatively elastic I flat)-elasticity = ∞  (perfect elastic I horizontal)
• What is the factors that influence of Price Elasticity of Demand (Ed)?
• The factors of Price Elasticity of Demand (Ed) are, -Availability of substitutes-Extent of necessity-Relative cost-Durability-Addiction-Time period
More Storyboards By cheryin
Explore Our Articles and Examples

### Teacher Resources

Lesson Plans Worksheet TemplatesPoster Templates