{"id":5929,"date":"2016-07-19T18:00:39","date_gmt":"2016-07-19T18:00:39","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/macroeconomics\/?post_type=chapter&#038;p=5929"},"modified":"2016-07-19T18:00:39","modified_gmt":"2016-07-19T18:00:39","slug":"outcome-calculating-price-elasticity","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/chapter\/outcome-calculating-price-elasticity\/","title":{"raw":"Outcome: Calculating Price Elasticity","rendered":"Outcome: Calculating Price Elasticity"},"content":{"raw":"<h2>What you\u2019ll learn to do: explain the price elasticity of demand and price elasticity of supply, and compute both using the midpoint\u00a0method<\/h2>\nRemember, elasticity\u00a0measures the responsiveness of one variable to changes in another variable. In the last section we looked at <span style=\"color: #000000;\">price<\/span> elasticity of demand, or how much a change in price affects the quantity demanded. In this section we will look at both\u00a0elasticity of demand and elasticity of supply.\u00a0Supply can also be elastic, since a change in price will influence the quantity supplied.\n\nIn this section you'll also learn how to calculate elasticity, using the midpoint (or arc) method. This is the method favored by economists, since it gives very accurate results.\n\nThe specific things you\u2019ll learn in this section include the following:\n<ul><li>Define price elasticity of demand<\/li>\n\t<li>Define price elasticity of supply<\/li>\n\t<li>Calculate price elasticity using the midpoint method<\/li>\n\t<li>Mathematically differentiate between elastic, inelastic, and unitary elasticities of demand and supply<\/li>\n\t<li>Explain perfect elasticity and perfect inelasticity<\/li>\n<\/ul><h3>Learning Activities<\/h3>\nThe learning activities for this section include the following:\n<ul><li>Reading: Calculating Percentage Changes and Growth Rates<\/li>\n\t<li>Reading:\u00a0Calculating Price Elasticities<\/li>\n\t<li>Reading: Three Categories of Elasticity<\/li>\n\t<li>Reading: Polar Cases of Elasticity<\/li>\n\t<li>Self Check: Calculating Price Elasticity<\/li>\n<\/ul>","rendered":"<h2>What you\u2019ll learn to do: explain the price elasticity of demand and price elasticity of supply, and compute both using the midpoint\u00a0method<\/h2>\n<p>Remember, elasticity\u00a0measures the responsiveness of one variable to changes in another variable. In the last section we looked at <span style=\"color: #000000;\">price<\/span> elasticity of demand, or how much a change in price affects the quantity demanded. In this section we will look at both\u00a0elasticity of demand and elasticity of supply.\u00a0Supply can also be elastic, since a change in price will influence the quantity supplied.<\/p>\n<p>In this section you&#8217;ll also learn how to calculate elasticity, using the midpoint (or arc) method. This is the method favored by economists, since it gives very accurate results.<\/p>\n<p>The specific things you\u2019ll learn in this section include the following:<\/p>\n<ul>\n<li>Define price elasticity of demand<\/li>\n<li>Define price elasticity of supply<\/li>\n<li>Calculate price elasticity using the midpoint method<\/li>\n<li>Mathematically differentiate between elastic, inelastic, and unitary elasticities of demand and supply<\/li>\n<li>Explain perfect elasticity and perfect inelasticity<\/li>\n<\/ul>\n<h3>Learning Activities<\/h3>\n<p>The learning activities for this section include the following:<\/p>\n<ul>\n<li>Reading: Calculating Percentage Changes and Growth Rates<\/li>\n<li>Reading:\u00a0Calculating Price Elasticities<\/li>\n<li>Reading: Three Categories of Elasticity<\/li>\n<li>Reading: Polar Cases of Elasticity<\/li>\n<li>Self Check: Calculating Price Elasticity<\/li>\n<\/ul>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-5929\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Outcome: Calculating Price Elasticity. <strong>Authored by<\/strong>: Steven Greenlaw and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":18,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Outcome: Calculating Price Elasticity\",\"author\":\"Steven Greenlaw and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-5929","chapter","type-chapter","status-publish","hentry"],"part":5918,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/wp\/v2\/users\/18"}],"version-history":[{"count":1,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5929\/revisions"}],"predecessor-version":[{"id":5983,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5929\/revisions\/5983"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/pressbooks\/v2\/parts\/5918"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/5929\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/wp\/v2\/media?parent=5929"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=5929"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/wp\/v2\/contributor?post=5929"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-macroeconomics\/wp-json\/wp\/v2\/license?post=5929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}