Elasticity Part 3 - Calculator
In this lesson on elasticity, you'll learn how to calculate the elasticity of a commodity based on its demand function and use it to find the maximum revenue and corresponding price and quantity of the commodity. By placing the elasticity formula into the calculator, you can easily recall it to evaluate the elasticity at any price. The optimal price can be found using a table or graphically, and once it's determined, the optimal quantity and revenue can be calculated by evaluating the demand function at that price.
Be able to compute the elasticity of a commodity at any price given the demand function. Use the elasticity function to find the maximum revenue and corresponding price/quantity of the commodity.
Check out www.themathdude.org for more videos.
- Notes - Notes on Elasticity
- Elasticity slides - Slides from the video on Elasticity
- What is elasticity?
- How does elasticity relate to maximum revenue?
- What is the formula for maximum revenue?
- How do you maximize revenue for a situation using a TI graphing calculator?
- How do you find the elasticity for a situation at a certain point?
- How can you find where elasticity is 1 by using the table on a TI graphing calculator?
- How can you find where elasticity is 1 using a graph on a TI graphing calculator?
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Staff Review
This lesson is the finale of the elasticity miniseries. You will learn how to maximize revenue for the same problem used in the previous two videos, but on a TI graphing calculator this time. This is a great tutorial for learning this skill on a graphing calculator. All parts of the problem are answered, including the price at which revenue is maximized, the number of products that need to be sold, and what the maximum revenue is.
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