Chapter Four: Elasticity of Demand and Supply

Chapter Four: Elasticity of Demand and Supply

4.1 Price Elasticity of Demand – Introduction (05:05)
This clip introduces the concept of price elasticity of demand and explains how it can be measured.
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4.2 Price Elasticity of Demand – Interpretation (04:13)
This clip classifies demand into five categories based on the magnitude of price elasticity of demand: elastic, inelastic, unit elastic, perfectly elastic and perfectly inelastic.
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4.3 Price Elasticity of Demand and Total Revenue (03:24)
This clip discusses how a price change can affect the total revenue of the price setting firm (e.g., a monopoly), depending on the price elasticity of demand for the product.
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4.4 Price Elasticity of Demand - the Total-Revenue Test (04:22)
Continuing the discussion in clip 4.3, this clip discusses the total-revenue test for deciding whether the demand for a product is price elastic or inelastic, and how price elasticity of demand changes along a straight-line demand curve. 
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4.4a Price Elasticity along a Linear Demand Curve (01:32)
This clip expands on clip 4.4 focusing on how price elasticity of demand changes along a straight-line demand curve.
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4.5 Factors Determining the Magnitude of Price Elasticity of Demand (05:39)
This clip discusses factors affecting the magnitude of price elasticity of demand, including whether the good has many substitutes, whether the good is a big ticket item, whether the good is a luxury good or a necessity, and whether the timeframe involved for consumption adjustment is relatively short or long.
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4.6 Price Elasticity of Supply (02:57)
This clip introduces the concept of price elasticity of supply and explains how it can be measured.
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4.7 Factors Determining the Magnitude of Price Elasticity of Supply (05:55)
This clip discusses factors affecting the magnitude of price elasticity of supply, including whether the required inputs are readily available, whether the required inputs are readily transferable to production sites, whether there are substitutes for the required inputs, and whether the timeframe involved for production adjustment is relatively short or long.
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4.8 Why are Gold Prices So Volatile? (02:19)
This clip explains the volatility of gold prices using the concept of elasticity.
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4.9 Cross Elasticity of Demand (04:31)
This clip introduces the concept of cross-price elasticity of demand, explains how it can be measured, and distinguishes between the case of substitutes and that of complements.
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4.10 Income Elasticity of Demand (02:53)
This clip introduces the concept of income elasticity of demand, explains how it can be measured, and distinguishes between the case of normal goods and that of inferior goods.
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4.11 Effects of Tax on Prices - Elasticity Matters (10:16)
This clip explores the effect of a product tax on consumer and producer prices, showing that the tax burden is shared by consumers and producers in a specific manner, depending on the relative magnitude of price elasticities of demand and supply. The lesson also demonstrates that the effect on prices would be the same, whether the tax is imposed on consumers or on producers.
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4.12 Effects of Tax on Quantity - Elasticity Matters (02:33)
This clip explores the effect of a product tax on equilibrium quantity, showing that the quantity effect depends on the price elasticities of demand and/or supply.
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4.13 Effects of Tax on Consumer & Producer Surpluses (02:32)
Given the price and quantity effects discussed in clips 4.11 and 4.12, this clip discusses the effects of a product tax on consumer surplus, producer surplus, government revenue, and deadweight loss.
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