By the end of this section, you will be able to:
Calculate the price elasticity of demand
Calculate the price elasticity of supply
The Principles of Microeconomics course was developed through the Ohio Department of Higher Education OER Innovation Grant. This work was completed and the course was posted in December 2019. The course is part of the Ohio Transfer Assurance Guides and is also named OSS004. For more information about credit transfer between Ohio colleges and universities, please visit: www.ohiohighered.org/transfer.Content ContributorsKen Fah Ohio Dominican UniversityJohn Fiske Ohio Dominican UniversityJoe Nowakowski Muskingum UniversityLibrarianNathan Wolfe Kenyon CollegeReview TeamMolly Cooper Ohio State University Subbu Kumarappan Ohio State University ATI
In this topic, students will be introduced to the concept of elasticity. They’ll learn about price elasticity of demand and price elasticity of supply, about their determinants and how to calculate it. They’ll be introduced to some applications of price elasticity. They’ll also learn about two other important elasticity measures, cross-price elasticity and income elasticity.