Elasticity of demand refers to the degree in the change in demand when there is a change in another economic factor, such as price or income. If demand for a good or service remains unchanged even when the price changes, demand is said to be inelastic. e_{(p)} = price elasticity Q = quantity of the demanded good P = price of the demanded good

1. WELCOME TO MY PRESENTION
IUBAT—International University of Business Agriculture and Technology
Leon Kumar Das
leonkumardas@gmail.com

2. Presentation On
Elasticity of Demand of “Dettol soap &
Lifebuoy-Hand-Sanitizer”

3. Name of Group – “The Black Dread”
Participant
Name ID Section Program
Leon Kumar Das 19111037 D BATHM
Mithun 18211013 D BATHM
Anika Tabassum Mukta 20102111 D BBA
S.M. Sujon Ahammed 18311013 D BATHM
Romjan Shaikh 18107066 D BSME

4. Introduction
What is Elasticity of Demand ?
• The Elasticity of Demand measures the percentage change in quantity
demanded for a percentage change in the price. Simply, the relative
change in demand for a commodity as a result of a relative change in
its price is called as the elasticity of demand.

5. The source
• The Unilever Bangladesh website.
• The E-commerce in Bangladesh Platform (Daraz , Evaly , Chaldal) etc.
• The local Shops.

6. Objectives
• In the covid-19 situation we can see The Doctor and specialist they
are given advice to protect our life from the virus using the mask and
wash or clean our hand again and again . But we can see The Demand
of Hand-Sanitizer and shop is very high than the normal following
days and also price also high.

7. Calculation for Lifebuoy-Hand-Sanitizer
• P1 (Old price) = 100bdt
• Q1 (Old demand) = 2 million
• P2 (New price) = 120bdt
• Q2 (New demand) = 5 million

8. Therefore, change in price of Lifebuoy-Hand-Sanitizer is,
P = P2-P1
P = 120-100
P = 20
Similarly, change in quantity demand of Lifebuoy-Hand-Sanitizer is,
Q = Q2-Q1
Q = 50000000-2000000
Q = 3000000
So, price elasticity of demand for Lifebuoy-Hand-Sanitizer is,
Ep = (3000000/20) × (100/2000000)
Ep = 15000 X 0.00005
Ep = 0.75
[So, this product is perfectly inelastic demand

9. Calculation for Dettol soap
• P1 (Old price) = 45bdt
• Q1 (Old demand) = 5 million
• P2 (New price) = 50bdt
• Q2 (New demand) = 8 million

10. Therefore, change in price of Dettol soap is,
P = P2-P1
P = 50-45
P = 5
Similarly, change in quantity demand of Dettol soap is,
Q = Q2-Q1
Q = 80000000-5000000
Q = 3000000
So, price elasticity of demand for Dettol soap is,
Ep = (3000000/5) × (45/5000000)
Ep = 600000 X 0.000009
Ep = 0.54
[So, this product is perfectly inelastic demand

11. 50
100
150
L
Year Price per Lifebuoy-Hand-Sanitizer Quantity Demand
2019 100 2000000
2020 120 5000000

12. Year Price per Dettol soap Quantity Demand
2019 45 5000000
2020 50 8000000

13. Result
• The results show that, the elasticity of demand of Lifebuoy-Hand-
Sanitizer is higher than the Dettol soap . Here we can see that people
show more responsiveness on the changes in price Lifebuoy-Hand-
Sanitizer as compared to that the Dettol soap.

14. Conclusion
• Finally, from the slide we, can see that important changes occurred in
the amount of Quantity demand of Lifebuoy-Hand-Sanitizer and
Dettol soap due to the change in price. we can that those two
products has a strong customer base.