Price Elasticity of Demand - part 1

[jin37uk]

I remember watching your videos when I was studying Economics at university.. thanks to your help I got a First :)

[Nidddaful]

thank you.. it helped a lot.. its in easy english.. thanks i just wish it could explain a bit more and with less speed :d

thank you so much! keep posting

[BecksBecky4ever]

really good! and explained very well and simple



[DietCokeMan2009]

This was incredibly helpful!! I am studying Intermediate Micro and did not understand elasticity well. Can you elaborate on the equation Q = a - bp ?

[AlvaroGooner95]

Hopefully you can help me, because I'm going to get neeched tomorrow in my Econ exam :)

[ochichas02]

thank you i learn alot on this video :)

[westonsupermarefm]

you look a chubby berbatov.

[watchinvidsx235]

@westonsupermarefm shut up man, he's helping people, go suck on a lemon

[ElliotDWhite]

I'm going to cut this.... not. ;D

Thanks for the help, best teacher ever!!

[georgemullens]

thanks so much, I've been finding it very difficult to study economics just because of the sheer amount of topics, this is both concise and well explained. Thanks.

[butbut0123]

it's brilliant!;p



[DreadAces]

i find myself coming back to this vid every single week :) extremely helpful. Problem is my mom thinks the internet is ruining my studies!

[VacuoCercare]

very good and funny teacher! ^_^

[tomisinakatkid]

The answer is actually negative 2.5 cause it has to be a negative

[xXxthebig4xXx]

@tomisinakatkid not necessarily the answer u get from the ped equation is always an absolute value

[BoostedSilEighty]

Seriously, you make it very easy. Wish you were my Managerial Economics teacher here in California.

[IndoShanz]

i have a question for the PED = 2.5 (elastic). how will you know exactly from the value 2.5 of whether it is a fall or an increase? (excluding the table)

[cloud12347]

@IndoShanz Because it is a known economic fact that price elasticity is almost certainly a decrease when the PED changes. This is because due to the law of demand as the price increases, demand decreases so a + and a - = a -. and then again as price decreases, demand increases, again a - and a + = a -.

[natieeee]

you are a great teacher!! thank you



[bejnet]

you explanation is excellent



[juls401]

i wish you were my econ teacher

[1005pker]

5%=.05

[gregclarkey]

@1005pker 5%=0.05

[palio2004]

Demand curve equation is Q = A-Bp; where A= Quantity sold when price is 0 and B is slope. How can one determine value of A.?

[iciclesify]

Thanks so much for posting these, they are so helpful!

[KatDrinkTea]

Thanks, this was well explained!

[merryme931]

Thank you!!!!

[jboze3131]

"im gonna cut this out, dont worry." okay, forget it- im keeping it. :) 

[TakuRiverKate]

THANK YOU!!!! I was not understanding it through my online text book...yuck! Thank you so much for your video!

[greenmonkes130]

THANK YOU SO MUCH! i was so confused in class

[GeorgiaFlatenShaw]

The only criticism I have is that when you are doing the multiplying on the board at the end, you forgot to scratch out the "2" as denominator and write "1". Although your math was correct in the end. (Sorry but I am too visual...I need all the written cues I can get. But after replaying this 6 times I finally grasped it. THANKS!

[GeorgiaFlatenShaw]

The reason he put "2" instead of "12" is that you have to write in the CHANGE -- in other words, the original amount went up from 10 to 12. Therefore the CHANGE was only 2. (I hope this is clear...)

[GeorgiaFlatenShaw]

The reason he put "2" instead of "12" is that you have to write in the CHANGE -- in other words, the original amount went up from 10 to 12. Therefore the CHANGE was only 2. (I hope this is clear...)

[braintrain5000]

beautifully taught, i have seen your other lectures as well, great work :-)

[EclecticSceptic]

'I'm going to cut this'

[proxyprav]

Really helpful..thanks a lot..!!

[sukhraj911]

i lik the concepts but i had my exam this morning and  i already fucked up!!!

[awsmits]

Thanks very much, you're getting famous in Groningen (Netherlands).

[queenbee5810]

Thank you so much! I finally understood elasticity of demand and I am about to watch your other videos!

[masterchief9064]

Join the facebook group for pajholden!

[karatekristen1]

Thanks for the excellent explanation for elasticity in demand, I do believe this has helped me more than any other video I have watched.

[Akniet1]

If demand for a good is price elastic, will lowering prices increase revenue? Please help out! thank you in advance!

[Akniet1]

If demand for a good is price elastic, will lowering prices increase revenue? Please help out! thank you in advance!

[rubioel9]

Very instructive video, thank you so much!

[MrPommerz]

Thank you

[unopeso]

Press 4. Only Phil Holden can make that noise by winking

[pharmalokd]

you just explained this so perfectly. wish you taught at my school. respect!!

[neoblade17]

Very well explained!!!

[tom00devon]

You remind me of a lovechild of Gordon Brown and Alistair Darling.

[Lylanification]

Hey Paj, you never accepted my friend request on facebook :(

[Shukria123]

but these changing winds can blow cold and hostile...

[RockaRolla74]

I was struggling quite a lot and was frustrated while trying to figure this out. But I got it now, thank you!

[mustangm626]

@RockaRolla74 i second that

[rukyivy]

(6) Why should price elasticities be greater in the long run than the short run? What types of product are likely to show greater differences.

[rukyivy]

(4) If an Industry had a a perfectly elastic supply curve what would it say about the responsiveness of that industry to changes in demand

(5) Analyse what happens to sales and revenue of suppliers when the government imposes a sales task on cigarettes when(i)demand is elastic and(ii)demand is inelastic. If the governments goal is merely to raise tax revenue, would it be better to tax goods with elastic or inelastic demand curves?

[rukyivy]

(1) Explain why there is a relationship between price elasticity of demand and the effects on total sales revenue.

(2) Which one of the following pairs would you expect to have the higher price elasticity: snack foods and walker plain crisps: Rolls royce cars and Ford Escorts: Coca cola and Sainsbury's own brand cola: The sun nd the Financial times: BP petrol and shell petrol?

[rukyivy]

Please can you answer any of the following questions?

(2) Which one of the following pairs would you expect to have the higher price elasticity: snack foods and walker plain crisps: Rolls royce cars and Ford Escorts: Coca cola and Sainsbury's own brand cola: The sun nd the Financial times: BP petrol and shell petrol?

(3)  If an Inndustry had a perfectly inelastic supply curve what would it say about the responsiveness of that industry to changes in demand?

[qwertyisyourfriend]

OH GOD STOP MOVING THE CAMERA

[juanlarreaochoa]

I would like to audition for the greek public sector. How may I do so? Please it is very very important

[nicknikolov1987]

great video !

[songcovers]

cool

[Jean1juan]

is that how they do math in england?

[phinchampagne]

i wish u were my lecturer ><

[nation360bd]

i wish you are my prof. thank you very much

[nation360bd]

its very explanation. thank you

[mrofficialtg3]

Helped alot!!!!!!!!!!!!!!!!!!!!!!!!! 10 starz

[Lipsandass]

Thanks.

[legolaslivein9th]

nice... thanks

[humbabaa]

thanks!

[cristinelubnb]

My textbook says that PED= change in quantity demanded divided by average quantity OVER change in price divided by average price.

I calculated the PED with both formulas and with yours I get 0.75 and with mine I get 0.2

[waggygee]

nice and simple

[GTA4SCARFACE]

You explain it so much better than my teacher, thanks mate :)

[SDBdub619]

at 5:53 when you are reducing...shouldn't the 2 reduce to 1 as well?  2/2=1 Why was that ignored?

[myersja]

stop moving the camera! I am getting a headache.

[Knuxsega]

That was great. Thank you.

[lazordyy]

u explain it so good thank you very muchhhhhhhhhhhhhh

[getmeoutofcalifornia]

ughh high school econ is the worst -__________-

[jacktharippares]

@getmeoutofcalifornia OMG do you have to do this in high school? ... im in collage and have this

[ikea4lifeyh]

why do you need 2 people to use the camera lol

[pajholden]

@ikea4lifeyh we are auditioning for the Greek public sector.

[juanlarreaochoa]

@pajholden I would like to audition for the greek public sector. How may I do so? Please tell me, it is very important.

[moesoes]

@pajholden Koning !

[PlaystationGamingTv]

Who needs to go college when you can just easily watch youtube and go onto Pajholden's channel and get the best explanation needed to get a brillant grade in your economics

[happyheadpopper]

Nice to see a good old fashioned blackboard, great explanation!

[MrBIGFUDGECAKE]

wow this guys a great teacher!! :)) thanks!!

[reeged]

Thanks for a well described summary of Price Elasticity! This will help a lot!

[srslayerz]

Thanks so much for this video. I really can't show how much us economics grasshoppers appreciate your videos. Keep it up, from all the viewers, THANK YOU! :)

[habi9b]

Dear pajholden

do have email . if u do can i have it?

thank u

[Abouzolof1]

its me george from your business class

[RukussMC]

i zoned out...sorry

[bobami36]

OMG. I loveee your vids. Its like crash course econ! :)

[KosAAAGH]

5% = 0.05?

[Romeowasbleeding1]

@KosAAAGH  yip

[quenchie1]

i dont understand why u put the change in price as 2 and not 12



[mamba1066]

@quenchie1

cause first it costs 10 pounds then 12 pounds so the change is 2

[scobe4life]

@quenchie1

He uses 2 rather than 12 coz delta (triangle) means change, formula uses the increase value (2) rather than the full value. if you use the full value again12 all you'll get 2 ratio multiplied and they would not indicate anything. the whole idea is to determine how incremental increase/decrease in price affect incremental increase/decrease in Quantity > elasticity (response)

[asha112233]

thank you so much for this video i was so confused i was not getting my teacher what she teaching me but when i have seen ur video i got everything in optimal way thank uuuu so so so much i love the u teach plz plz plz upload more videos about MBA economics can u plz upload regression analysis and standard error estimation, demand estimation plz will look forward for ur kind help u r great owsome and best teacher.

[radip]

It's great that you used the example to show us how PED works :)

[erikapk]

This is fantastic and crystal clear. Wish I had a prof like you!

[ichariley]

lol the intro.

[JamieMaguireful]

Thanks very much!! Really helped me understand the concept!

[queenbeeolivia]

Thanks so much have to write an eassy on this and missed the lecture (part time student ) . Have you any tips on how helpful price elasticity of demand is on policy analysis.

[timberwolves03]

Im a the U of Montreal, my teacher sucks, it's all mixed up and everything. You are clear & straight forward, thank u so much!

[richy70blitz]

Excellent methodical and precise

[phem22sm1]

thank you so much for this video!!! this really helped me alot!

[90Chubbs]

this guy looks like dr. octavius

[sapnyosentry]

Why is it that youtube teachers are better than real teachers?

Great job man, you saved me an hour of studying by explaining everything so simply :D

[14ashleighmarie]

@sapnyosentry I totally agree!!

[x4617]

dnt knw wt to say!! u r a great teacher!!

[leife7]

amazingly understandable key concepts of economics! bravo bravo! thank you Mr Holden

[Roshansmith]

This is brilliant thank you so much!!!

[chinzie275]

Good job on your explanation... I've really learned the concepts better. there is a correction though. In your equation the price that fell is 12 according to what you wrote, but when you were working in out, you substituted the 12 for 2. Is that just a typo or is it some kind of logic?

[pajholden]

@chinzie275 HI - thanks for your comment. You have misread the equation, which calls for change in price. As price rose from 10 to 12, thus the change in price is 2.

[azar24701]

@pajholden i have a question, this always stumps me. The quanity in demand. does the demand curve shift or is a prediction of where the QD shift too? Im sorry if im not clear on it but i don't know whether if the line shifts or not? What is the difference in between a change in demand and a change in quanity demand?

[amritarsenalfcrox]

@pajholden dude it is correct

cange in price thus 12-10

=2

[ssnlp1]

@chinzie275 the "2" represents the change in percentage. From 10 to 12

[Redbloodedsky]

What I don't get is why there are literally tons of equations to get PED, and now I'm not sure which ones are the right ones :S some use average, some use percentages, some only use the values set,... WTF?

[falconpierce]

@Redbloodedsky It all depends on what your comfortable with, however in real life there will be some inputs given to you and you can use whichever eq is suited for

[sheilarobespierre]

your better than my teacher !!!

[sebrullezz89]

The best!! got my exam in a few hours and this explains it all :)

[pestss]

My god he just taught me PED in less than 7 minutes compared to my lecturer who failed to teach me that in 50 minutes.

EPIC OWNAGE!

[zukunft100]

very well done!

[mlmiles1]

excellent presentation! Thanks so much!

[redplum007]

YOU ARE REALLY A GREAT HELP SIR! I'LL BE HAVING MY REPORT TOMORROW AND I'VE UNDERSTOOD THE TOPIC BECAUSE OF THIS VIDEO! I'M LOVING ECONOMICS MORE. <3

[Paljoey]

Why assume that a lowering of a price will increase a demand? I believe other factors influence what people pay for things. Markets and supplies as well as distributes are can be limited. This is not a natural law any more than a book entitled Geek Logic which placed mathematical formulas of dating and success with the opposite sex were but into formula.

[dadonator07]

PAJHOLDEN YOU ARE THE MAN!!!

[virattt]

hit that shit right on the nail! thank you good sir.

[ganapath2005]

God bless you!!

[rishisingh2007]

its really good and very helpful

[politics4me1]

I enjoyed the lecture. You are much easier to understand than my Econ professor! Do you have any videos on Marginal Utility?

[janst6]

This is awesome!

[CzechPikey]

Cheers, this really helped me out. love the beginning :)

[ShiSav]

Thanks so much, youre videos have helped me a lot! We always watch them in class:)

[MaryanneT007]

Great help. Thank you!!

[MaryanneT007]

Hi, Could you tell me how to figure allocate supply costs for process and job order costing methods?? :-)

[scottsaab]

i love this man

[guscus69er]

im gaining maximum utility from consuming this public good!

[fareed801]

excellent good ;lecture

[ani3396]

you are my favorite online teacher!!!!!!!!!!!

[GlobeNinja]

simple yet effective way of breaking down PED

[theretropuppets]

Thanks that was a big help

[menece2society4u1]

Thank you so much i wish i had seen your video's way earlier thank you.

[enkjrypt]

You are god! You explained it in 6 minutes what my lecturer couldn't in a whole semester! You are my quickfire exams cheat sheet!

[cjpsyche]

wow!!! superb!!!

[HSC888888]

can you use blue chalk in more of your videos i like it. thanks!

[HSC888888]

AMAZING lesson you are so good at explaining.

[deniskatashkentskiy]

u did some great job dude! its so clear to me now!

[djpaco01978]

thank you, great lecture

[SpudsGood]

Excellent video. Can you do one on empirical demand function ?

[danhart894]

I NEVER leave feedback on youtube videos, even the ones I watch for entertainment. You have a gift period; Thanks you so much! Haha my teacher called our class "f$ucking idiots" today, and I must say that i do not feel like one anymore ; )

[818lord]

so freakin helpful

[proaussiegamer]

Cheers mate this helped me alot

[amrcrombie]

Excellent. I'm doing my MBA online. Our instructor has asked us to watch your video. I found it to be an excellent substitute of real classes.

[nomoreheroes93]

so much better than reading my keefe or gillespi text books when revising for my as level economics but whats with the production values? unless this has been transferred from video its pretty poor...

[omilosavljevic]

You should be given a Nobel prize for humanitarian aid for helping desperate students all over the world !! Brilliant !

[josenerigza]

there's something really facinating and interesting to mee that my teacher told me on class.. he said " Advertisement not necessarily has to increase demand.. but it decrease its inelasticity and make them able to charge more for their price." what you guys think about it?

[cheekiebuns]

I have an assignment due that covers this and I couldn't understand it, but you've explained it perfectly! Thanks so much.

[fareed4321]

very nice ,,,, thnak u very much keep it up bro

[G0DLESS]

THANK YOU VERY MUCH. I take that lesson 4 times. This really help me to understand :)

[danzik]

Thanks for this video. It really helped me understand PED.

[ahmeri18]

You are an awesome teacher. Keep on the good work and thanks a bunch for this

[ponison]

You're great lecturer ... Thank you so much

[IanSGarner1]

I will not only pass my exam tomorrow, I will have ACTUALLY learned how elasticity works. You have saved a bastard child's future.

Eternally grateful,

Econ student from Washington

[irenesanghyun]

YOU ARE BEYOND AMAZING!!! i ahve a midterm in 2 days and this helps me tremendously!

[younaster]

Perfectly Explained.. Thank you very much

[mytra08]

Thanks you explained it much easier than my professor!!!

[egorka2201]

I wish my teachers could explain it that well )) great job!!

[sjoerdwennekes]

Great!!! This really helps, very awesome!

(next time use a tripod for your camera)

[areefe1]

perfect ! great job!!

[nathanbelete]

You are always on point !!!

[kyo1city]

good job

[mileynmandyfan101]

i love you.

thanks for making my day better and helping me with the subject

[flewton]

NIcely done my professor should show this in class :)

[mandy106isnotporn]

Thanks this is great revision! xx