Calculating Price Elasticity of Demand (PED) | NCEA AS91401 3.3 Micro-economic concepts

How do you calculate Price Elasticity of Demand in economics? In this video we introduce the two main methods used to calculate price elasticity of demand, in simple terms. This is the second video in our series which covers everything you need to know for the elasticity of demand topic within NCEA AS91401 3.3 Demonstrate understanding of micro-economic concepts. Videos in this series: 1. Introduction to Elasticity of Demand 2. Price Elasticity of Demand (PED) 3. Cross price elasticity of demand (XED) 4. Income elasticity of demand (YED) 5. Incidence of tax. Head to https://bigbrainenergy.co.nz for practice questions and more resources! 0:00 Introduction 0:48 What is Price Elasticity of Demand (PED)? 1:08 The percentage change method 1:59 Interpreting the coefficient 2:52 The mid-point method 4:59 Interpreting the answer in words 5:21 Summary 6:10 Practice Questions 10:18 Conclusion