This week’s topics
Calculating elasticity
- The elasticity formula
- Working with simple numbers
What you will be able to do
- 2.2 Calculate a simple elasticity ratio.
Activity
Calculate the elasticity for three price changes.
Study materials
Further resources
- Principles of Economics 3e, ch. 5.1: Calculating elasticity (midpoint method) · PDF · OpenStax (2022), worked examples; pp. 110–114 · for registered students
- Prealgebra 2e, ch. 6.2: Percent increase and decrease · PDF · OpenStax (2020), the percentage changes used in the formula; pp. 482–493 · for registered students
- Demand for gasoline is more price-inelastic than commonly thought · Open-access article · Havranek et al. (2012), Energy Economics. Compares elasticity estimates and why the numbers differ; useful for practising the formula. · for registered students
- The application of the percentage change calculation in the context of inflation · Open-access article · Bansilal (2017), Pythagoras. Percentage change, the building block of the elasticity formula, and common mistakes. · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
