{"id":8802,"date":"2018-05-29T20:00:21","date_gmt":"2018-05-29T20:00:21","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/introduction-to-calculating-price-elasticity\/"},"modified":"2024-04-25T21:36:42","modified_gmt":"2024-04-25T21:36:42","slug":"introduction-to-calculating-price-elasticity","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/introduction-to-calculating-price-elasticity\/","title":{"raw":"Introduction to Calculating Price Elasticity","rendered":"Introduction to 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>\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2017\/07\/01221316\/see-saw-240650_1280.jpg\"><img class=\"aligncenter wp-image-6190\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/05\/29200020\/see-saw-240650_1280-300x200.jpg\" alt=\"See-saw\" width=\"509\" height=\"339\" \/><\/a>\r\n\r\n&nbsp;\r\n\r\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 dig deeper by learning how to calculate elasticity using the midpoint method. We'll also introduce the idea of elasticity of supply.\u00a0Supply can also be elastic, since a change in price will influence the quantity supplied.","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><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2017\/07\/01221316\/see-saw-240650_1280.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6190\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/05\/29200020\/see-saw-240650_1280-300x200.jpg\" alt=\"See-saw\" width=\"509\" height=\"339\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\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 dig deeper by learning how to calculate elasticity using the midpoint method. We&#8217;ll also introduce the idea of elasticity of supply.\u00a0Supply can also be elastic, since a change in price will influence the quantity supplied.<\/p>\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-8802\">\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 class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Picture. <strong>Provided by<\/strong>: pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/en\/see-saw-swing-swing-device-rock-240650\/\">https:\/\/pixabay.com\/en\/see-saw-swing-swing-device-rock-240650\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/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":29,"menu_order":5,"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\":\"\"},{\"type\":\"cc\",\"description\":\"Picture\",\"author\":\"\",\"organization\":\"pixabay\",\"url\":\"https:\/\/pixabay.com\/en\/see-saw-swing-swing-device-rock-240650\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"11157938-610c-455e-b1e1-880b14f44f14","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-8802","chapter","type-chapter","status-publish","hentry"],"part":8792,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/users\/29"}],"version-history":[{"count":1,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8802\/revisions"}],"predecessor-version":[{"id":9212,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8802\/revisions\/9212"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/parts\/8792"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/8802\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/media?parent=8802"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=8802"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/contributor?post=8802"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/license?post=8802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}