How to Solve Elasticity Problems in Economics

This video goes over the equation and some examples of solving price elasticity of demand problems in economics. More information is available at http://www.freeeconhelp.com/2011/05/h... or http://www.freeeconhelp.com/2011/08/u... Essentially an elasticity measure looks at the responsiveness of one variable to changes in the other. In this case we are focused on the two economic variables of quantity and price. The easiest way to think about elasticity is to imagine a rubber band. The force on the rubber band causes it to stretch in a similar manner that a price change causes people to buy more or less of a product. The measurement of the relationship between this cause and effect in practice is called elasticity. More information is available at http://www.freeeconhelp.com/2011/05/h... or http://www.freeeconhelp.com/2011/08/u...