ELASTICITY OF DEMAND

ELASTICITY OF DEMAND

GIVEN: Q1 = 100 P 1 = 60
Q2 = 200 P 2 = 50

EXAMPLE:

Q1 = 100
Q2 = 200

Formula:

200 - 100
x 100
100 + 200
2

100
x 100
 x 100
300
2

100
x 100
150

66.67

66.67
-18.18

- 3.67

>

66.67 > -18.18

 EXAMPLE:

P 1 = 60
P 2 = 50

Formula:

50 - 60
x 100
60 + 50
2

-10
x 100
 x 100
110
2

-10
x 100
55

-18.18
ELASTICITY OF DEMAND

GIVEN: Q1 = 25 Kilo P 1 = 42
Q2 = 20 Kilo P 2 = 53

EXAMPLE:

Q1 = 25 Kilo
Q2 = 20 Kilo

Formula:

20 - 25
x 100
25 + 20
2

-5
x 100
45
2
 -5
x 100
22.5

-22.22

-22.22
23.16

- 0.96

<

-22.22 < 23.16

 EXAMPLE:

P 1 = 42
P 2 = 53

Formula:

53 - 42
x 100
42 + 53
2

11
x 100
95
2
 11
x 100
47.5

23.16

-22.22
23.16