A Primer on the Price Elasticity of Demand

A Primer on the Price Elasticity of Demand Price elasticity of demand (sometimes referred to simply as price elasticity or elasticity of demand) measures the responsiveness of quantity demanded to a price. The formula for price elasticity of demand (PEoD) is: PEoD (% Change in Quantity Demanded)/(% Change in Price) (Note that price elasticity of demand is different from the slope of the demand curve, even though the slope of the demand curve also measures the responsiveness of demand to price, in a way.) 2:48 Watch Now: How Does Price Elasticity of Demand Work? Calculating the Price Elasticity of Demand You may be asked the question Given the following data, calculate the price elasticity of demand when the price changes from $9.00 to $10.00. Using the chart on the bottom of the page, well walk you through answering this question. (Your course may use the more complicated Arc Price Elasticity of Demand formula. If so, youll need to see the article on Arc Elasticity) First, well need to find the data we need. We know that the original price is $9 and the new price is $10, so we have Price(OLD)$9 and Price(NEW)$10. From the chart, we see that the quantity demanded when the price is $9 is 150 and when the price is $10 is 110. Since were going from $9 to $10, we have QDemand(OLD)150 and QDemand(NEW)110, where QDemand is short for Quantity Demanded. Thus we have: Price(OLD)9Price(NEW)10QDemand(OLD)150QDemand(NEW)110 To calculate the price elasticity, we need to know what the percentage change in quantity demand is and what the percentage change in price is. Its best to calculate these one at a time. Calculating the Percentage Change in Quantity Demanded The formula used to calculate the percentage change in quantity demanded is: [QDemand(NEW) - QDemand(OLD)] / QDemand(OLD) By filling in the values we wrote down, we get: [110 - 150] / 150 (-40/150) -0.2667 We note that % Change in Quantity Demanded -0.2667 (We leave this in decimal terms. In percentage terms this would be -26.67%). Now we need to calculate the percentage change in price. Calculating the Percentage Change in Price Similar to before, the formula used to calculate the percentage change in price is: [Price(NEW) - Price(OLD)] / Price(OLD) By filling in the values we wrote down, we get: [10 - 9] / 9 (1/9) 0.1111 We have both the percentage change in quantity demand and the percentage change in price, so we can calculate the price elasticity of demand. Final Step of Calculating the Price Elasticity of Demand We go back to our formula of: PEoD (% Change in Quantity Demanded)/(% Change in Price) We can now fill in the two percentages in this equation using the figures we calculated earlier. PEoD (-0.2667)/(0.1111) -2.4005 When we analyze price elasticities were concerned with their absolute value, so we ignore the negative value. We conclude that the price elasticity of demand when the price increases from $9 to $10 are 2.4005. How Do We Interpret the Price Elasticity of Demand? A good economist is not just interested in calculating numbers. The number is a means to an end; in the case of price elasticity of demand it is used to see how sensitive the demand for a good is to a price change. The higher the price elasticity, the more sensitive consumers are to price changes. A very high price elasticity suggests that when the price of a good goes up, consumers will buy a great deal less of it and when the price of that good goes down, consumers will buy a great deal more. A very low price elasticity implies just the opposite, that changes in price have little influence on demand. Often an assignment or a test will ask you a follow-up question such as Is the good price elastic or inelastic between $9 and $10. To answer that question, you use the following rule of thumb: If PEoD 1 then Demand is Price Elastic (Demand is sensitive to price changes)If PEoD 1 then Demand is Unit ElasticIf PEoD 1 then Demand is Price Inelastic (Demand is not sensitive to price changes) Recall that we always ignore the negative sign when analyzing price elasticity, so PEoD is always positive. In the case of our good, we calculated the price elasticity of demand to be 2.4005, so our good is price elastic and thus demand is very sensitive to price changes. Data Price Quantity Demanded Quantity Supplied $7 200 50 $8 180 90 $9 150 150 $10 110 210 $11 60 250

Who Invented White People Free Informative Essay Sample

Who Invented White People Free Informative Essay Sample and tradition of protest that was amplified by the Civil Rights Movements and urban rebellions. The stories by Wright and Jay illustrate the historical sequence of events; the authors complement each other. In other words, those battered blacks depicted by Wright later claimed to be victims of white civilization, as portrayed by Jay. Wright, using personal narrative style, clearly illustrates that blacks had suffered great injustice. He notes that slaves in the past and second rate citizens, blacks had suffered every type of cruelty, exploitation, and injustice. In turn, Jay argues that their moral claim against America and its government was not restricted to a given abuse or a fixed period of time and correspondingly could not be compensated or indemnified with a fixed sum of money by payment to a definite number of victims. The heart of their moral claim for special and preferential legislation was their innocence and the wrong they had suffered at white hands. Whipped, raped, lynched, families split apart and sold at auction blocks-they had everything taken from them. The linkage of blacks to victim status made blackness and victimization status virtually synonymous. Black identity was a moral identity; it was a righteous suffering owed. Blacks became the typical victims. Blacks hold a special place in the liberation theories. Jay states that in contemporary world, blacks invite white society to join them in doing what is right. They permit whites to form a mutual moral community with them. Together they would suffer and sacrifice for the good. Yet, in the course of the 1960s, especially after the death of Martin Luther King in the spring of 1968, much black rhetoric became exclusionary. Advocates of black power, the Black Muslims, and others argued that blacks were a unique and separate people unto themselves. In the name of their past suffering under slavery and its consequences, they indicted white society universally. The most extreme interpretations against white society were global and violent, and all discussion of black violence and black racism of black against black were sharply suppressed. Jay argues that racism is still present in the contemporary America The author explain that too often in America, we talk about race as if it were only something that people of color have, or only something we need to talk about when we talk about African Americans or Asian Americans or American Indians or Latino Americans (para 4). The society does not accept African American beliefs and style of life, constantly questioning their indigenous tradition. To continue, Wright laid the path, which was later followed by such authors as Jay. After careful analysis of his article, Who Invented White People? it becomes apparent that the impact of the Civil Rights Movement on fundamental social patterns proved to be limited; the campaign did not revitalize the many ghetto neighborhood in the country. Yet this result cannot be fully understood without referring to the many powerful forces that spun these communities into a downward spiral. The situation depicted by Wright when black people were prohibited even from reading illustrates the degree of tension that was increasing at the beginning of 60s. Furthermore, as different industries shut down ghetto people lost their traditional jobs Fewer jobs and less income destabilized the already weak social structure of the ghetto. As the black middle class fled these declining regions, the impoverished became packed together, isolated from the mainstream. Even true followers of the movement, despite their good intentions and the considerable power they had, failed to reverse these trends. Ironically, perhaps the most fundamental contribution of the Civil Rights Movement to this broader process has been to accelerate the opening of more communities to blacks, which ultimately hastened the flight of the black middle class from inner-city neighborhoods. Jay shows that the rise of local leaders marked a number of important developments, rooted in individual states, but with national consequences. Yet when Martin Luther King and his followers launched the Civil Rights Movement, they strived for a more immediate impact on American race relations. They hoped to spur a full-scale assault on enduring and pervasive racial injustice. In conclusion, it may be noted that Jay and Wrights works are very similar in nature, yet differ in rhetoric and narration style. Furthermore, the authors lived during different times, which influenced their realization of the processes depicted in these works. The era of 1960s and 1970s was a time when young people from ethnic and mainstream groups in various parts of the country sought to express their hopes for the liberty. In the history of the U.S., no other era embodies the rise of youthful self-conscious idealism. Young white Americans participated in a process, which they expressed in art and in politics. Even though, Jay rightfully claims that blacks are far from celebrating their victory in the war against injustice and discrimination, it is clear that those times depicted by Writing are long gone and are unlikely to ever return. Hence, the progress has been achieved and blacks did not fight in vain.

A Non-Profit Organization Solve Inc Term Paper Example | Topics and Well Written Essays - 2500 words - 1

A Non-Profit Organization Solve Inc - Term Paper Example This has answered the needs of customers in a timely manner and provided return trade-off. Price entails the charge of the services that we are offering; this has been tricky since it determines customer base of our company. We are offering low priced services and products to allow customers afford. In addition, we are non-profit Non-Governmental Organization thus our services are public oriented. We have been able to observe the market environment and competitors’ price strategies to ensure we are relevant. Business location is a critical ingredient in success and expansion since it increases convenience between suppliers and the organization. Our location has been strategic especially in residential areas, high traffic and main roads that are easily accessible. In essence, the strategy is focused on the commuting families and individuals. In addition, the company aims at supplying their products and services to local businesses, offices, and schools. On the other hand, the location of business should be close to processing facilities, market, and source of supply. We have committed to advertising our products and services through internet Web site, which has proven to be effective. Notably, the internet is fast turning into a major promotional avenue, and the institution believes it will advance with regards to the importance over time. Furthermore, it is the most convenient means for us to wide presence from the onset. Our major customer at the moment is the S.S Conner Elementary School. After we are successful with the school we will extend our services to other poor performing elementary schools within the area before we expand to other institutions of learning within and outside the state. The image of our institution is very vital because it finds out the relationship with our customers in the education sector. Having a good image will attract customers and clients to our table. We intend to do what we do best.  We intend to do what we do best. By being the best in the education industry, we will become a respected leader in the field. The level of education in Texas should be top-notch. We also seek to promote and offer quality services. This way, clients, and prospects will acknowledge our services.

Organizational Behavior in a Negative or Positive Manner Essay

Organizational Behavior in a Negative or Positive Manner - Essay Example Organizational behavior helps to draw the organizational as well as industrial psychology. Key elements of organization’s behavior are people, structure, technology, environment and many other external elements. This is required for improving job performance, increasing job satisfaction, encouraging leadership, promoting innovation etc. Management will adopt various techniques to evaluate the performance, modify salary and compensation structure by using this method. There are positive and negative sides also. Benefits of organizational behavior are it is systematic study of attitude and action of people within organization. Managers can do proactive work in effective and efficient way by using this method etc. on the other hand managing work force diversity, improving quality and productivity through the existing manpower, responding to globalization etc are few challenges for using this method. Culture can be defined as such kind of behavior that is cultivated and transmitte d socially. It includes knowledge, values, religion, beliefs, relation, roles, meanings, concepts of the universe, material possessions etc. Different types of culture are pluralism, dualism, salad blow, pragmatic culture, normative culture, academic culture, club culture etc. For example it can be said that in pragmatic culture management will focus only on the customer’s satisfaction. In normative culture management of the company is strict and rigid about the company’s guidelines, rules and regulations. Three major types of culture are discussed below: Pluralism- In this culture smaller groups of individuals try to maintain their unique culture identity and their value, culture, identities are related to broader culture and tradition.

For Which of the Boys Essay Example for Free

For Which of the Boys Essay The boy that I felt the most sympathy for in The History Boys would have to be Posner. The portrayal of his character compared to that of the other boys is entirely different. Throughout the play, Posner is shown to be an outsider; too young to understand most things, and even to be included in Hectors inappropriate behaviour. It is evident from the start that Posner has feelings towards Dakin, however Dakins behaviour towards Posner is far from romantic, hence we can sense that he doesnt return the romantic feelings that Posner so desperately desires. This immediately creates sympathy for him, as it shows that he has no hope of happiness with the person whom he clearly loves. As the play progresses and develops, we can see that Posner is confused about his sexuality and is tormented by the idea that hell never fit in anywhere. He confesses his feelings and worries to Irwin who sympathises, however this does nothing to comfort Posner. As the other boys begin to change their attitudes towards life and learning, Posner seems to remain the same and spend more time with Hector. This could be viewed as very odd behaviour, as the other boys seem keen to avoid any time alone with Hector due to his ephebophilia. This, again, highlights the fact that Posner is extremely lonely and confused, therefore is willing to seek comfort with even the most inappropriate of people. When the disastrous event of the motorcycle accident happens at the end of the play, we are given an insight into just how much it affected the boys in years to come. While it seems that the others have moved on in life, Posner is described to have periodic breakdowns and to have been the only one that truly took everything to heart. This proves that Posner was really affected by those particular years of his life, despite the fact that he was never directly targeted by Hector. Overall, Posner is presented as a confused, lonely character which generates large amounts of sympathy from the audience.

Alienation in Kafkas The Metamorphosis Essay -- Kafka Metamorphosis E

Franz Kafka's The Metamorphosis In German, the word Kafka uses to describe Gregor Samsa's transformation is ungezieter, which is a word used by the Germans during his lifetime in reference to the Jews. The literal English translation is "monstrous vermin." Kafka uses Gregor's family to show how inhumane society can be. In The Metamorphosis, Kafka uses his experiences to create much of Gregor's life. He indicates that Gregor's family only saw him as a means of survival before the change and took advantage of him. After the change the family is unable to communicate with him because they are blinded by his outer appearance. Kafka's life of alienation directly relate to his development of Gregor Samsa, the outcast son who Kafka symbolically turns into a huge, repulsive creature.Kafka pulls much of his personal experience into the writing of this book. Kafka was a German-speaking Jew in a society where Jews were oppressed. He pulls this into the writing of the book showing Gregor's employer expecting more of him because he is a Jew. The company does not trust him, even though he has not missed a day of work in five years, and a chief clerk comes to check on him . Had this been a German employee, the company would not have so quickly questioned his absence. Kafka also had a rough time dealing with his family because he renounced his Jewish heritage and did not live up to the expectations of his domineering father. Kafka implies that Gregor's father to father feels the... Alienation in Kafka's The Metamorphosis Essay -- Kafka Metamorphosis E Franz Kafka's The Metamorphosis In German, the word Kafka uses to describe Gregor Samsa's transformation is ungezieter, which is a word used by the Germans during his lifetime in reference to the Jews. The literal English translation is "monstrous vermin." Kafka uses Gregor's family to show how inhumane society can be. In The Metamorphosis, Kafka uses his experiences to create much of Gregor's life. He indicates that Gregor's family only saw him as a means of survival before the change and took advantage of him. After the change the family is unable to communicate with him because they are blinded by his outer appearance. Kafka's life of alienation directly relate to his development of Gregor Samsa, the outcast son who Kafka symbolically turns into a huge, repulsive creature.Kafka pulls much of his personal experience into the writing of this book. Kafka was a German-speaking Jew in a society where Jews were oppressed. He pulls this into the writing of the book showing Gregor's employer expecting more of him because he is a Jew. The company does not trust him, even though he has not missed a day of work in five years, and a chief clerk comes to check on him . Had this been a German employee, the company would not have so quickly questioned his absence. Kafka also had a rough time dealing with his family because he renounced his Jewish heritage and did not live up to the expectations of his domineering father. Kafka implies that Gregor's father to father feels the...

How Did the 19th Amendment Change the United States

Period : History Ashley Stanton Subject: How did the 19th amendment change the United States 4-23-2013 The 19 th amendment gave women the right to vote. It was proposed on June 4, 1919 and ratified on August 18, 1920. The impact of the 19 th amendment was enormous it gave women the same power that men had.It created a strong influence and created a huge cultural impact. It gave the women of the era more confidence and a sense that they could accomplish and do more. The life style changes in the 1920's showed how big and important the impact of the nineteenth amendment was. Women had become much more confident and wanted to use this â€Å"power† in other areas, too.They gave up a lot of the † controlling† aspects of the Victorian age, from the long and buttoned up clothes to new outlooks of personal freedom they started to live outside the confines of being a house wife and home maker women got job outside the home, they started playing sports, they shortened their dresses and bobbed their hair and had fun !! The Roaring Twenties was a new age, and an age where women first started enjoying more freedom and influence. This has continued on to this very day and in my opinion there is still work needed to do to level the space between men and women.Mr. Barack Obama president of the United States signed the Lilly LedBetter Fair Pay Act, which would guarantee the right of women to sue for equal pay for doing the same job as men. Even though women are still underpaid , they get paid 77 cents to every dollar made by men. Women hold a value of 17 percent of the seats in Congress. There are only 6 U. S governors as women. No major party has nominated a women as president. Today after 90 years have passed women still lag behind men.