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  • Elasticity: Presented By: Algamon, Alvarez, Crespo

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    Salie Carpio Danguecan
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    The document defines several concepts related to elasticity: 1. It defines point elasticity, arc elasticity, and their formulas for calculating elasticity between two points on a demand curve. 2. It discusses the relationship between elasticity (ED) and total revenue, with ED>1, ED=1, and ED<1 relating to increasing, constant, and decreasing total revenue respectively. 3. It provides formulas for calculating the percent change in quantity and price, as well as the price elasticity of demand (PED) formula.

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    The document defines several concepts related to elasticity: 1. It defines point elasticity, arc elasticity, and their formulas for calculating elasticity between two points on a demand curve. 2. It discusses the relationship between elasticity (ED) and total revenue, with ED>1, ED=1, and ED<1 relating to increasing, constant, and decreasing total revenue respectively. 3. It provides formulas for calculating the percent change in quantity and price, as well as the price elasticity of demand (PED) formula.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views20 pages

    Elasticity: Presented By: Algamon, Alvarez, Crespo

    Uploaded by

    Salie Carpio Danguecan
    The document defines several concepts related to elasticity: 1. It defines point elasticity, arc elasticity, and their formulas for calculating elasticity between two points on a demand curve. 2. It discusses the relationship between elasticity (ED) and total revenue, with ED>1, ED=1, and ED<1 relating to increasing, constant, and decreasing total revenue respectively. 3. It provides formulas for calculating the percent change in quantity and price, as well as the price elasticity of demand (PED) formula.

    Copyright:

    © All Rights Reserved
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    Elasticity

    Presented by: Algamon, Alvarez, Crespo


    %𝜟𝑸
    𝑷𝑬𝑫 =
    %𝜟𝑷
    𝑸𝟐 −𝑸𝟏
    𝑸𝟏
    Point Elasticity = 𝒑𝟐 −𝒑𝟏
    𝒑𝟏

    𝑸𝟐 −𝑸𝟏
    𝑸𝟐 +𝑸𝟏
    𝟐
    Arc Elasticity = 𝒑𝟐 −𝒑𝟏
    𝒑𝟐 −𝒑𝟏
    𝝅
    𝐸𝐷 = ∞

    𝐸𝐷 = > 1
    𝐸𝐷 = 1

    𝐸𝐷 =< 1

    𝐸𝐷 = 0
    Total revenue = (Price)(Total Quantity Sold)
    𝑸𝟐 −𝑸𝟏
    Percent Change in Quantity =
    𝑸𝟐 +𝑸𝟏
    × 𝟏𝟎𝟎
    𝟐

    𝑷𝟐 −𝑷𝟏
    Percent Change in Price =
    𝑷𝟐 +𝑷𝟏
    × 𝟏𝟎𝟎
    𝟐

    %𝜟𝑸
    𝑷𝑬𝑫 =
    %𝜟𝑷
    %𝜟𝑸𝒅
    =
    %𝜟𝑷

    𝜟𝑸𝒅
    YED =
    𝜟𝒚
    %𝜟𝑸𝒅𝒙
    XED = %𝜟𝒑
    𝒚
    %∆𝑸𝒔
    𝜺𝒔 =
    %∆𝜬
    .
    ∆
    ∆𝑸 𝜟𝑷 ∆𝑸 𝑷
    𝜺𝑫 = + or 𝜺𝑫 = 𝒙
    𝑸 𝑷 𝑸 𝑸

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