Unit 3: Elasticity Our mission is to provide a free, world-class education to anyone, anywhere. Khan Academy is a 501 (c) (3) nonprofit organization. Donate or volunteer today!

Learn about the price elasticity of demand, a concept measuring how sensitive quantity is to price changes. Elasticity is calculated as percent change in quantity divided by percent change in price.

An elastic demand or elastic supply is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. An inelastic demand or inelastic supply is one in which elasticity …

Elasticity of demand is not the slope of the curve. The percentage part of the equation is crucial. Use the formula Sal gives and test it by yourself. On a straight line, elasticity will be highest near the vertical …

The elasticity of supply or demand can vary based on the length of time you care about.

Elasticity is a general term, referring to percentage change of one variable divided by percentage change of a related variable that can be applied to many economic connections.

So let's think about, let's analyze what the elasticity of supply of bars of soap are. And in other videos, we go into a lot more depth. This video, it's important for you to just get the intuition, although I find …

Now, it's important to note that the elasticity of demand, or actually supply, is not always constant for a given product. In fact, it can change at different price points.

In a previous lesson we learned about price elasticity of demand, but there are many other types of elasticity that measure how agents respond to variables other than the change in a good's price.

Elasticity and tax incidence Typically, the incidence, or burden, of a tax falls both on the consumers and producers of the taxed good. But if we want to predict which group will bear most of the burden, all …