"In this video, you will be able to know about elasticity in detail and its daily life example/application. a detailed explanation of how economic slowdown came in India due to demonetization, GST, trade war, and monsoon impact, etc. we have tried to give examples of all types of elasticity such as demand elasticity, supply elasticity, cross-price elasticity, income elasticity some of those are automobile sector, petrol price due to OPEC & substitution impact on Airtel due to Jio."
In economics, elasticity is the measurement of the proportional change of an economic variable in response to a change in another. It shows how easy it is for the supplier and consumer to change their behavior and substitute another good, the strength of an incentive over choices per the relative opportunity cost.
It gives answers to questions such as:
"If I lower the price of a product, how much more I will sell?"
"If I raise the price of one good, how will that affect the sales of this other good?"
"If the market price of a product goes down, how much will that affect the amount that firms will be willing to supply to the market?"
An elastic variable (with an absolute elasticity value greater than 1) is one which responds more than proportionally to changes in other variables. In contrast, an inelastic variable (with an absolute elasticity value less than 1) is one which changes less than proportionally in response to changes in other variables. A variable can have different values of its elasticity at different starting points: for example, the quantity of a good supplied by producers might be elastic at low prices but inelastic at higher prices, so that a rise from an initially low price might bring on a more-than-proportionate increase in quantity supplied while a rise from an initially high price might bring on a less-than-proportionate rise in quantity supplied.
Elasticity can be quantified as the ratio of the percentage change in one variable to the percentage change in another variable, when the latter variable has a causal influence on the former. A more precise definition is given in terms of differential calculus. It is a tool for measuring the responsiveness of one variable to changes in another, causative variable. Elasticity has the advantage of being a unitless ratio, independent of the type of quantities being varied. Frequently used elasticities include price elasticity of demand, price elasticity of supply, income elasticity of demand, the elasticity of substitution between factors of production and elasticity of intertemporal substitution.
Elasticity is one of the most important concepts in neoclassical economic theory. It is useful in understanding the incidence of indirect taxation, marginal concepts as they relate to the theory of the firm, and distribution of wealth and different types of goods as they relate to the theory of consumer choice. Elasticity is also crucially important in any discussion of welfare distribution, in particular consumer surplus, producer surplus, or government surplus.
My Channel:-
Vocabulary Playlist:-
G.k. Playlist:-
Notification Playlist:-
English:-
Art & Creativity:-
#Elasticity #IL-Learner #TrendingVideo
0 Yorumlar