This includes all the basics of elasticity of demand. This includes graphs and personalised examples.
To note - this is a summary of the chapter price elasticity of demand from the book microeconomics by Sandeep garg.
CBSE class 11
Elast d denord s on
edetien la, den
bosicolldemovd
kasicaly shoas/, indeaes the
etet,
oite hages.
honge Camimody ahen
This aas develeped by Brel, Manshall In his bske
PBaincile Esnomics?
Delifon
Deinificn Elostathy B deired os in
demand acemdihy
any
hecelageoe
sHeShet to
o
peertoqe
Change
camn
chonge in the obtois aedirg derand thdt
odfty'
>
hee .ezist Nus lades aehg derod. ot e thebe tene
on
one 3 quantfale déemiroit.
Psice
Poice
hcerte
e he given
srelatied
the
cehnncdity:
geods.
ameh
eresold
corßurnel
DIMENSIONS OF ELASTiClIY (
OF DEMAND
•Bice Elashicity t t slens to the beacetae dhanqe in he qoity
to the þacartage
denanded
change in "a coimmcdity ah oresket
aice e the cornroodity
•SrOSS Elasty
•aoss &
oks to he bercetoge change in deond
Cerhnodih alh gezbed te ocertage
to
chonge in poie
sdded sode C
subtinde cernþlenertony gecds)
• Shcerne Elstiiy : elens to the change n demand
i a
nodity
th acet to chcinge in incerne' he COnSuhe7.
, PRICE :
ELSlicTY
st sieos to the degiee elensieness e denand a
cOromodity
tS
wi selaence to Vchange in oite e tot CErnmo
ecentage
+ basically shaas e armeurt" by ohich gp a cormadP
changes
(obiting
sth
by the lao denand)
in bzice e te commodrty
IMPoRIANT POINTIS
a estaltishesa
þalce e h
a Buarttative aelabnslip tetween D and
comrodly, hile ehenpc3 Srernaîn constor
a
Aighen he nurmenicol value e elasiciy, konger the efed
a pice hoge D.
certan gocds, a change in pice leads
in
F denand, shereas, in &orne casel, here
a gieaen dhorg
8hnoll
n due to chonge in þice.
MEASURING ELASTicITY OF DEMAND - PERCENIAGE METHDD
by Bre. Manshal. d alse knoan ag
•Fluc Mefod
• Manemticcl mod
•Pstebetonate method.
Acouding to it,Elaslicity, s meoäusned os he sratfs go chonge in
D to o chonge þole caHDdlty
E %
in
change 8D
to changein buioe
Prchllionate Mehod is an etension el
he o %
method.
AP
whene, A
OP =P-P,P
-, §=inihial D ,= hes D
NOTE
Parsbalnate Mecdabselue chonge h þofce k SD ane censidees
Poncentage mefmod : Ietoqe honge'in þoice 8D ae
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