This simple PPT shows concise information about the Elasticity of Demand.

1. Presented by: G09 Erich
Macabuhay
ELASTICITY
OFDEMAND

2. - measures the response of a
product’s demand after a
change in an economic
factor (e.g., price).
ELASTICITYOFDEMAND

3. ELASTICDEMAND
 Perfectly Elastic Demand
Alfred Marshall (1842-1924)
3TYPESOF elasticityofdemand
INelasticdemand
 Perfectly Inelastic Demand
UNITARYelasticdemand

4. 1.Elasticdemand
 Change in price results
in massive changes to
the quantity demanded.

5. ELASTIC
DEMAND
CURVE

6. PERFECTLYELASTIC
demand
 Business cannot change
the price.
 Demand is infinity.

7. 2.inElasticdemand
 Change in price causes a
small change in
demand.

8. inelastic
DEMAND
CURVE

9. PERFECTLYinelastic
demand
 Change in price does
not affect the quantity
demanded.

10. 3.UNITARYELASTIC
demand
 Amount of change in
price = Amount of
change in demand.

11. • More available
substitutes
make the
elasticity of
demand higher
and vice versa.
AVAILABILITY OF
SUBSTITUTES
• Elasticity of
demand is less
for people
with higher
income than
for people
with lower
incomes.
• A commodity
may be of
different
importance.
Factors thataffect elasticity
Levelof
income
Type of
good/service

12. QUESTIONS
1. In your own words, define Elasticity of Demand.
2. Give an example of a Type of Elasticity of Demand and explain how
it works.
3. What is the difference between Elastic Demand and Inelastic
Demand?
4. Is Perfectly Elastic Demand realistic? Why or why not?
5. Give an example of a factor which can affect elasticity and explain
its effect.

13. THANKYOUFOR
LISTENING!

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https://www.youtube.com/watch?v=HHcblIxiAAk
http://blog.cambridgecoaching.com/understanding-
elasticity-of-demand-in-economics
https://www.economicshelp.org/blog/531/economics/inelas
tic-demand-and-taxes/
https://www.economicsdiscussion.net/elasticity-of-
demand/calculations/elasticity-of-demand-meaning-
and-types-with-calculations/12350
https://www.economicsdiscussion.net/elasticity-of-
demand/calculations/elasticity-of-demand-meaning-
and-types-with-calculations/12350
https://www.yourarticlelibrary.com/economics/9-major-
factors-which-affects-the-elasticity-of-demand-of-a-
commodity-economics/8946
https://sites.google.com/site/economicsbasics/perfectly-
elastic-demand
https://sites.google.com/site/economicsbasics/perfectly-
inelastic-demand?authuser=0
https://www.quora.com/What-is-the-difference-between-
elastic-and-inelastic-demand
resources