About This Chapter
Elasticity of Markets in Microeconomics - Chapter Summary & Learning Objectives
In this chapter, we'll take a look at various forms of elasticity in microeconomics. These professional-quality lessons will help you grasp the concept of elasticity in microeconomics in short, engaging video lessons. At the end of each lesson, you'll have the opportunity to take a self-assessment quiz to see how well you've understood the material. In these lessons, you'll learn things like:
- Price elasticity
- Income elasticity
- How price elasticity relates to supply and demand
- How the cross price elasticity of demand is calculated
We'll cover everything from price elasticity to income elasticity and everything in between. Furthermore you'll gain an understanding of how elasticity relates to supply and demand.
|Price Elasticity: Understanding Supply and Demand||Learn how elastic and inelastic demand can inform us about how flexible consumers are with price changes.|
|Price Elasticity of Demand in Microeconomics||Explore the definition of price elasticity of demand and its formula.|
|Cross Price Elasticity of Demand: Definition and Formula||Review cross price elasticity of demand and how it is calculated.|
|Income Elasticity of Demand in Microeconomics||Discuss how income elasticity of demand works.|
|Price Elasticity of Supply in Microeconomics||Discover the formula for price elasticity of supply and see how it is used.|
1. Price Elasticity: Understanding Supply and Demand
Marketing managers need to understand the basics of supply and demand in order to develop the precise price for their product. Inelastic and elastic demand explains how sensitive consumers are to price and how much flexibility it allows the marketing team.
2. Price Elasticity of Demand in Microeconomics
Discover the definition and formula for price elasticity of demand. See some real-world examples of how it is calculated, and find out what it means for demand of a good to be inelastic or elastic.
3. Cross Price Elasticity of Demand: Definition and Formula
Learn what cross price elasticity of demand means. Find out why business owners and economists like to know cross price elasticity, and discover how to calculate it. See some everyday examples.
4. Income Elasticity of Demand in Microeconomics
The income elasticity of demand is a useful tool that measures what happens to consumer demand for products and services when incomes change. We will work through the formula and interpret what the answers mean.
5. Price Elasticity of Supply in Microeconomics
Price is an importance concept in economics, as it is the meeting point of supply and demand. This lesson explains some of the issues with elasticity of price with respect to supply, along with some real-world examples.
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Other chapters within the AP Microeconomics: Exam Prep course
- Foundational Economic Concepts
- Economic Systems & Structures
- Supply & Demand in Markets
- Microeconomics & Consumer Behavior
- Production & Costs in Economic Markets
- Firm Behavior & Monopoly in Microeconomics
- Factor Markets in Microeconomics
- Public Goods & Government in Microeconomics
- Public Policy, Government & Microeconomics
- AP Microeconomics Flashcards