An Overview of the Price Elasticity of Demand
This post will help you with understanding the fundamentals of the price and unit elasticity of demand and inelasticity, as part of your Prelim Economics course. Price elasticity of demand refers to the responsiveness of the quantity demanded due to a small change in the price of a good or service.
There are three types of elasticities that we look at in the preliminary economics course. These are:
- Inelastic; and
- Unit elastic.
The videos below talk about these in more detail.