2.11
Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is computed as the ratio of the percentage change in quantity demanded to the percentage change in price.
Mathematically, it is represented as E-D equals delta Q by Q over delta P by P.
This equation yields a negative value, indicating an inverse relationship between price and quantity demanded.
Consider a family that used to purchase 50 gallons of gasoline every month at 3 dollars per gallon.
If the price increases to 8 dollars per gallon, the family reduces its consumption to 40 gallons.
The numerator part can be calculated from the percentage change in quantity demanded.
Similarly, the denominator part is the percentage change in price.
Taking their ratio gives the price elasticity of demand to be -0.12.
This means that for every 1% increase in price, the quantity of gasoline demanded decreases by 0.12%.
This suggests the family is not very responsive to price changes for gasoline.
De prijselasticiteit van de vraag meet de gevoeligheid van de gevraagde hoeveelheid van een goed of dienst voor veranderingen in de prijs.
Beschouw bijvoorbeeld een gezin dat doorgaans elke maand 6 pakken melk koopt wanneer de prijs $ 4 per pak is. Wanneer de prijs echter stijgt tot $ 5 per pak, verminderen ze hun consumptie tot 5 pakken.
De eerste stap om de prijselasticiteit van de vraag te berekenen, is het bepalen van de procentuele verandering in de gevraagde hoeveelheid. Dit kan worden berekend als (5-6)/6 * 100 = -16,67%.
Vervolgens moet de procentuele verandering in de prijs worden berekend. Dit komt neer op (5-4)/4 * 100 = 25%.
Ten slotte wordt de prijselasticiteit van de vraag berekend door de procentuele verandering in de gevraagde hoeveelheid te delen door de procentuele verandering in de prijs, wat -16,67% / 25% = -0,67 oplevert.
Voor een prijsstijging van 1% is er een daling van 0,67% in de gevraagde hoeveelheid. Dit suggereert dat melk een essentieel product is voor dit gezin, en ze reageren niet erg op prijsveranderingen.
Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is computed as the ratio of the percentage change in quantity demanded to the percentage change in price.
Mathematically, it is represented as E-D equals delta Q by Q over delta P by P.
This equation yields a negative value, indicating an inverse relationship between price and quantity demanded.
Consider a family that used to purchase 50 gallons of gasoline every month at 3 dollars per gallon.
If the price increases to 8 dollars per gallon, the family reduces its consumption to 40 gallons.
The numerator part can be calculated from the percentage change in quantity demanded.
Similarly, the denominator part is the percentage change in price.
Taking their ratio gives the price elasticity of demand to be -0.12.
This means that for every 1% increase in price, the quantity of gasoline demanded decreases by 0.12%.
This suggests the family is not very responsive to price changes for gasoline.
From Chapter 2:
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