A to B

60−40 60−40
% ∆ Qd= ×10 0 % ∆ P= ×10 0
40+6 o 40+6 o
2 2
20 20
% ∆ Qd= ×100 % ∆ P= × 100
100 100
2 2

20 20
% ∆ Qd= ×100 % ∆ P= × 100
50 50

% ∆ Qd=40 % % ∆ P=40 %

E to F

60−40 60−40
% ∆ Qd= ×10 0 % ∆ P= ×10 0
40+6 o 40+6 o
2 2

20 20
% ∆ Qd= ×100 % ∆ P= × 100
100 100
2 2

20 20
% ∆ Qd= ×100 % ∆ P= × 100
50 50

% ∆ Qd=40 % % ∆ P=40 %
6 Slides Compute the given Problem
- You want to buy a face mask. Recently, at the price of 100,
you could buy 50 pieces of face mask, but now, at the
price of 120, you can only buy 40 pieces of face mask.
7 slides.
P1= 100 Q1 = 50
P2 = 120 Q2 = 40
% ∆ Qd %∆P

40−5 0 120−10 0
% ∆ Qd= ×10 0 % ∆ P= ×10 0
5 0+4 o 10 0+ 12o
2 2
−10 20
% ∆ Qd= ×100 % ∆ P= × 100
90 22 0
2 2

−1 0 20
% ∆ Qd= × 100 % ∆ P= × 100
45 110

% ∆ Qd=−22.22 % % ∆ P=18.18 %
 Slide 8
%ΔQdemanded
Ed =
%ΔPrice

−22.22 %
Ed =
18.18 %

Ed =|−1.22 %|

Ed =1.22

Slide 9. Types of Price Elasticity of Demand

If the percentage change in quantity

It is known as demanded divided by the percentage Which means

change in price equals:

Changes in price result in

Perfectly elastic Infinity demand declining to zero.

Changes in price yield a

Elastic Greater than 1 significant change in
demand.

Changes in price yield

Unitary 1 equivalent (percentage)
changes in demand.

Changes in price yield an

Inelastic Less than 1 insignificant change in
demand.
Perfectly inelastic 0 Changes in price yield no
change in demand.

Slide 10
%ΔQdemanded
Ed =
%ΔPrice

−22.22 %
Ed =
18.18 %

Ed =|−1.22 %|

Ed =1.22 Elastic

Slide 11

Slide 12
 A to B
60−40 0.70−0.8 0
% ∆ Qd= ×10 0 % ∆ P= × 10 0
40+6 o 0.8 0+0.7 o
2 2
20 −0.1
% ∆ Qd= ×100 % ∆ P= × 100
100 1 .5
2 2

20 −0 .1
% ∆ Qd= ×100 % ∆ P= ×100
50 0 .75

% ∆ Qd=40 % % ∆ P=13.33 %

40 %
Ed =
−13 . 33 %

Ed =|−3 %|

Ed =3 Elastic
 Last slide
E to F

160−1 40 0 .20−0.30
% ∆ Qd= ×10 0 % ∆ P= ×10 0
1 40+1 6 o 0.30+o .20
2 2

20 −0 .1
% ∆ Qd= ×100 % ∆ P= ×100
3 00 0.5
2 2

20 −0.1
% ∆ Qd= ×100 % ∆ P= × 100
1 50 0.25

% ∆ Qd=13.33 % % ∆ P=−40 %

13.33 %
Ed =
−40 %

Ed =|−0.33 %|

Ed =0.33 Inelastic