Rearranging Elasticity Formulas and the Elasticity Triangle

The video tutorial explains how to rearrange elasticity formulas, focusing on price elasticity of demand. It provides examples of calculating elasticity and demonstrates how to rearrange formulas to solve different problems. The concept of the elasticity triangle is introduced, showing how it can be used to calculate various elasticities, including price elasticity of supply, income elasticity of demand, and cross elasticity of demand.

What is the standard formula for price elasticity of demand?

How can you rearrange the elasticity formula to make a specific variable the subject?

What does a price elasticity of demand value of minus 0.5 indicate?

If the price of a good rises by 30% and the price elasticity of demand is minus 2, what is the expected change in quantity demanded?

What is the relationship between the proportionate change in quantity demanded and the proportionate change in price?

Describe the process of rearranging the elasticity formula to solve for the proportionate change in quantity demanded.

How do you calculate the proportionate change in price using the rearranged formula?

Explain how to use the elasticity triangle to find the price elasticity of demand.

What are the four main elasticities that can be calculated using the elasticity triangle?

What is the significance of the elasticity triangle in economics?