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Presented by: G09 Erich
Macabuhay
ELASTICITY
OFDEMAND
- measures the response of a
product’s demand after a
change in an economic
factor (e.g., price).
ELASTICITYOFDEMAND
ELASTICDEMAND
 Perfectly Elastic Demand
Alfred Marshall (1842-1924)
3TYPESOF elasticityofdemand
INelasticdemand
 Perfectly Inelastic Demand
UNITARYelasticdemand
1.Elasticdemand
 Change in price results
in massive changes to
the quantity demanded.
ELASTIC
DEMAND
CURVE
PERFECTLYELASTIC
demand
 Business cannot change
the price.
 Demand is infinity.
2.inElasticdemand
 Change in price causes a
small change in
demand.
inelastic
DEMAND
CURVE
PERFECTLYinelastic
demand
 Change in price does
not affect the quantity
demanded.
3.UNITARYELASTIC
demand
 Amount of change in
price = Amount of
change in demand.
• 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
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.
THANKYOUFOR
LISTENING!
CREDITS: This presentation template was created by
Slidesgo, including icons by Flaticon, and
infographics & images by Freepik and illustrations
by Stories
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

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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.
  • 6. PERFECTLYELASTIC demand  Business cannot change the price.  Demand is infinity.
  • 7. 2.inElasticdemand  Change in price causes a small change in demand.
  • 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.
  • 14. CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, and infographics & images by Freepik and illustrations by Stories 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