# Questions tagged [elasticity]

Elasticity is the measurement of how responsive an economic variable is to a change in another.

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### How useful are basic economics (elasticity / consumer & producer theory) in real life?

I am thinking how these concepts will be applied in the industries / at a job. For example I could see elasticity as useful in projecting the outcomes of supply ...
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### Trying to figure out the price elasticity of demand

I have a demand curve $y(x) = x^{-b}$ where $b > 1$. I'm trying to figure the price elasticity of demand, but I'm not familiar with finding price elasticity without having some sort of numbers. ...
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### An attempt at using a graphing calculator to visualize the price elasticity of demand for a point moving on the demand curve

I assume a demand function ( of price) : $Q(x)= 10-2x$ , and therefore, a price function (of demand ): $P(x)= -\frac 12 x +5$. The demand curve ( $y =-\frac 12 x +5$) represents the price function, ...
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### How to compare the price elasticity of demand from different points by looking at the graph?

Let's say I have a demand curve looks something like this: How could I analyze who have the highest or lowest price elasticity of demand? it seems that the point 1 has highest price or demand? But ...
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### How to represent the elasticity function with demand on the X axis? How to transform the elasticity formula to this effect?

The formula for price elasticity of demand uses price as independent variable. But I wonder what the elasticity graph looks like on an ordinary microeconomics system of coordinates, where demand is on ...
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### Is -1 elasticity considered unit elastic or relatively inelastic?

Simple question but can't find answer. Is -1 elasticity considered unit elastic or relatively inelastic? We know that if % change in quantity / % change in price = 1, we have unit elastic, does that ...
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### Mathematical explanation of transformations of Marginal Revenue

MR = d(Total revenue)/dQuantity = d (Price * Quantity)/dQuanitity This is the same as this : MR = P(Q) + dP/dQ I did it with an example and it amazed me how both are equal but I still dont get how. ...
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### How does elasticity of demand of a public good affect tax rate?

Consider a situation with 2 consumers with one private good, and one public good; where consumers are endowed with fixed amount of private good $M_i$, and give up portion of their private good to ...
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### Why does price elasticity of demand determine total revenue?

Why is it that when demand is inelastic, price and total revenue move in the same direction, but when demand is elastic, they move in opposite directions? I understand in terms of consumer response, ...
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I have learned that in a perfectly competitive market in the absence of externalities, taxes will impose a deadweight loss upon society, due to reduced market participation by consumers and producers. ...
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### Why does it make sense for Elasticity to be the ratio of a % change increase to a % change decrease? [duplicate]

So, elasticity, say the price elasticity of demand, is: $$\text{elasticity}=\frac{\text{% change in demand}}{\text{% change in price}}$$ So an elasticity of one corresponds to situations where a 1% ...
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### How would I calculate the quantity demanded of a product with price elasticity given and price change given? [closed]

"The price elasticity of apples is -0.5. When the price of apples is $2, consumers demand 500 apples a day. If the price of apples rises to$3, how many apples will be demanded?" I really ...
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### Why supply is more elastic at lower prices and more inelastic at higher prices?

In my economics book*, in the lesson explaining what price elasticity of supply is, it's written: In reality, supply curves are likely to be non-linear, so will have a different PES value at ...
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### Why do supply curves that start at the origin have a PES value of 1?

In my economics book*, in the lesson explaining what price elasticity of supply is, it's written: Any supply curve that starts at the origin has a PES value equal to 1. The theoretical outcome means ...
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### What is the proper way to read and/or express "price elasticity of demand"?

The natural language phrase such as square root of x for a function $Sqrt(x)$ precedes the input with the word of. When we talk of a bivariate function, such as $x/y$ aka $Ratio(x,y)$, we say simply ...
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### Finding own price elasticity/cross pirice elastcity

I am looking for a source where I can find the own price elasticity/cross price elasticity of public and private transport for the European countries and each continent. Does somebody know a credible ...
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