@@rudolphdandelion6840 Honestly underestimated how much maths would be in economics, would seriously reccomend taking A level maths because I’ve got about 2 years of a level to catch up on
Very helpful for someone taking a college level online economics class and I have to teach myself everything, now it makes sense. Edit: Idk why I’m getting responses on this comment so many yrs after making it. I don’t even remember the class I took. It was probably in my freshman yr of university. It was helpful at the time that’s it. It was required of my degree to take economics as a business major. And yes you can probs take this in high school in AP or something idk nor do I care. Like yeah in college you have to take stuff you probably could’ve gotten credit for in high school. I got college credit on history and English classes not science or math. Some classes you can’t get AP credit for. Anyways yeah that’s all I have to say.
I'm getting my Masters from a top tier (USNWR top 3 in this area) university. The professors here are fantastic and my microeconomics professor is one of my favorites. They are not as effective as these guys. Your knack for avoiding jargon, the build of the curriculum is excellent with no surprises so far, the avoidance of comprehension-killing abbreviations, and the tie-in to real world scenarios is simply outstanding. I am in my late 50s, a physician scientist and have sat through tens of thousands of lectures. You 2 are among the GOATs. I mean it. Gentlemen, you have created a phenomenal legacy and should be VERY PROUD!. Thank you all. Do you have a biostatistics channel?? LOL
The curve of corn is inelastic and in case of inelastic demand curve the revenue rises with the increase in price. In the given year, there will be a shortage of supply which will increase the price and shift the supply curve up and left. So, as the price is increased the revenue of farmers will increase.
when yield in going down the supply will be less and the price will go up. thus when the price goes up and the demand goes down by just a little we get more revenues and a inelastic curve. Also the reason why the demand will go down just by a little is because the substitute of corn that is soybeans is also not more in supply.
I'm also guessing because corn is a broadly defined good, which is used in many different ways, the price elasticity of demand will be lower enough just as it is.
For the first time, i understand how to calculate elasticity perfectly. Thank you. This is way better than my professor's explanations. I've subscribed to your channel.
Oh my God thank you so much you have saved me. I've been struggling in my college Economics class and was desperately needing a breakdown of how to calculate elasticity in each of these situations. Thank you, thank you, thank you
Wow, 6 hours trying to figure this out from the materials my University provided. Now I have it down in 30 min. (only because I stopped to take notes and apply this to the problems I've been trying to solve!)
Thank you from someone from 9th grade and is currently working on my homework related to this lesson. Oh wait I'm done thanks to you, it's fast and easy
When the yield is going down the unit price should increased. So farmers can earn more profit because corn & soybean have inelastic type demand curve. Am I correct sir?
Slope of the demand curve gives clue of the elasticity type. Curve ( or slope ) formula is rise= P / run = Q. A steep one will be inelastic as price (p) rise more than demand (Q) decrease. (or vica versa)
Since the yield must have decreased, the amount supplied must have decreased in the market. Therefore, the supply curve shifted to the left. As a result, the equilibrium quantity is of a lower amount than the previous quantity demanded. If the demand curve remained the same, then it would be fair to say that the price has increased as a result of the shift in supply. However, if the total revenue increases for farmers because of the increase in price, it would be safe to say that the demand curve was inelastic, at least in the short-term.
The definition of percent change is incorrect. That error ripples through the whole calculation for elasticity. % change = (Q2 - Q1) / Q1. For example, if Q1= 100, and Q1=150, clearly this is a 50% increase from Q1 to Q2. My formula also gets this result: (150-100)/100 = 50/100 = .5 = 50%. His formula, (Q2-Q1)/((Q2+Q1)/2), yields (150-100)/((150+100)/2)=50/125=.4=40%, which is clearly wrong.
Yes, finally someone else has noticed. I solved one of the examples and my answer was different from the one given in the video and I doubted my definition of percent change.
So is so easy and interactive to understand! Could you still help me out on this one? Product falls to 6$ to 8$ causing demand to extend from 1250 to 12500.
hi, i have a question. if the price elasticity of demand is -1.4 which is negative. is it considered to be inelastic because its less than one, or is it elastic because we don't consider the negative and we only take the number so its going to be greater than one. thank you
Thank you so much for sharing your knowledge. One suggestion, the words/ sentences appearing on the screen blocks me from seeing your written explanations. Anyway thank you again, you're very helpful.
I have a question. Are the figures and the graphs always relative to the buyers’/market’s behaviors? Like can we actually predict the demand of quantity when we change a price through figures?
Hello Victor, and yes, that part is a bit confusing. However, it all comes to this method he introduced called the *midpoint method* Instead of just dividing the change in the quantity demanded by the change in price, he does the following: Main Equation: (Demand2 - Demand1) / (Demand2 + Demand1)/2 Where: (Demand2 - Demand1) = -10 and the bottom part of the main equation: (Demand2 + Demand1)/2 represents (90 + 100)/2 = 95. You can see that by adding demand 2 and demand 1 and dividing that number by two he is finding the midpoint of that change. Just that! Then you have -10/95 = -0.105 The same applies to the bottom part of the fraction.
Thank you so much for the lecture! But one question: why when you explained the Midpoint Formula you divided the average by 2? From where did that 2 came from?
Hi Milena, the two is because he is finding the average between 2 numbers, if he was finding the average between 3 numbers it'll be 3 an so on. I hope this is clear?
These questions are tricky! My advice is to graph it and use perfectly elastic (horizontal) and perfectly inelastic (vertical) demand curves when you do. For question #3, if the housing supply curve shifts out (because housing is increasing), then the price of housing will stay the same if demand is perfectly elastic and the price will actually drop if demand is perfectly inelastic. Therefore, if you’re trying to pay the lowest price possible, you’d want demand to be inelastic because the price drops with an increase in the supply of housing, or any good. If you just want intuition, think about it this way- if demand is perfectly inelastic, it means that demand isn’t responsive to a change in price. Now apply this logic to question #4. In this question, the supply of housing is decreasing (shifting in). As in question #3, if the demand for housing is elastic, the price will stay the same. If demand for housing is inelastic, the price of housing will increase because this time, unlike question #3, the supply of housing has decreased. If you’re again trying to pay as little as possible, you should hope that demand for housing is elastic. Hope this helps! -Mary Clare
Continue learning with practice questions: mru.io/cx5
This is so much better than my professor reading off slides that I am paying thousands of dollars for....
SO TRUE!!!! (Bartender this man's drinks are on me!)
Jake Randolph So true!
Hahahahaha same bro
Sadly you are correct....
100% true
I'm 15 and I'm learning so much from this. I wanna become an economist.
Good for you kid. Be sure to get good at math. You’ll need math when you go further down the realm of economics.
not to just be good at math, but actually understand how it works
I study it at University. Don’t
@@rudolphdandelion6840 Honestly underestimated how much maths would be in economics, would seriously reccomend taking A level maths because I’ve got about 2 years of a level to catch up on
It’s hard find something else thank me later 😭
Very helpful for someone taking a college level online economics class and I have to teach myself everything, now it makes sense.
Edit: Idk why I’m getting responses on this comment so many yrs after making it. I don’t even remember the class I took. It was probably in my freshman yr of university. It was helpful at the time that’s it. It was required of my degree to take economics as a business major. And yes you can probs take this in high school in AP or something idk nor do I care. Like yeah in college you have to take stuff you probably could’ve gotten credit for in high school. I got college credit on history and English classes not science or math. Some classes you can’t get AP credit for. Anyways yeah that’s all I have to say.
I'm in the exact same boat now. Did you get through the course after?
And someone in highschool 😩😭
Nocturnal Toothbrush ha
wait wtf how is this college level im doing it in ninth grade
Wait college level!?!?
This is the best I've ever come across. Self explanatory , easy and interactive. Very very helpful thanks a million.
I'm getting my Masters from a top tier (USNWR top 3 in this area) university. The professors here are fantastic and my microeconomics professor is one of my favorites. They are not as effective as these guys. Your knack for avoiding jargon, the build of the curriculum is excellent with no surprises so far, the avoidance of comprehension-killing abbreviations, and the tie-in to real world scenarios is simply outstanding. I am in my late 50s, a physician scientist and have sat through tens of thousands of lectures. You 2 are among the GOATs. I mean it. Gentlemen, you have created a phenomenal legacy and should be VERY PROUD!. Thank you all. Do you have a biostatistics channel?? LOL
Good to read that I am not the only one doing a master and still coming back to basics:D
I wish that these guys were my profs back then
excellent teaching .. thumbs up.
The curve of corn is inelastic and in case of inelastic demand curve the revenue rises with the increase in price. In the given year, there will be a shortage of supply which will increase the price and shift the supply curve up and left. So, as the price is increased the revenue of farmers will increase.
when yield in going down the supply will be less and the price will go up. thus when the price goes up and the demand goes down by just a little we get more revenues and a inelastic curve. Also the reason why the demand will go down just by a little is because the substitute of corn that is soybeans is also not more in supply.
I'm also guessing because corn is a broadly defined good, which is used in many different ways, the price elasticity of demand will be lower enough just as it is.
Thanks you
true
thanks man
Why are you making so much sense?
I have learned more in 15 minutes then the 3 hour lecture for micro economics. thank you
"I am just a businessman, giving the people what they want." 9:06
Al Capone
"I can never remember myself so I always draw these little graphs". Somehow I doubt that but this guy is a legend. Made it so easy to understand.
I am a student of BBA in Afghanistan I really enjoy studying withyou all thanks a lot
For the first time, i understand how to calculate elasticity perfectly. Thank you. This is way better than my professor's explanations. I've subscribed to your channel.
Oh my God thank you so much you have saved me. I've been struggling in my college Economics class and was desperately needing a breakdown of how to calculate elasticity in each of these situations. Thank you, thank you, thank you
Wow, 6 hours trying to figure this out from the materials my University provided. Now I have it down in 30 min. (only because I stopped to take notes and apply this to the problems I've been trying to solve!)
Such clarifying class. Congrats for this great job!
Thank you from someone from 9th grade and is currently working on my homework related to this lesson. Oh wait I'm done thanks to you, it's fast and easy
We have some great free study resource collections for A level Economics and IB Economics - click here www.tutor2u.net/economics/collections
Very helpful for going back to the basics on how to calculate elasticity. Especially for midterms!
Nothing shot of Laudatory Lecture Wow😲.... Excellent 🤞🏾😁
I've been really stuck while learning economics but this really helped me!!
Great to hear! Best of luck.
-Roman
ive commented before but really your videos have helped me so much. much better than textbook honestly saying. thank you for your great work :)
Very very helpful my ma'am cannot teach like this in her whole lifetime
You are a life saver. Thank you so much.
You make it look really simple. Great work! Thank you!
I dont understand why or how you make so much sense, but you do. Thank you for all your help
This video helped me to finish my Agricultural assignment, thank u, it was delightful watching this it really helped
I didn't feel that I'm in home and learning this much .Thank you its very helpful.
You bet. We are stuck at home and learning this now. Good old days :I
Wow I surprised ❤ this lesson series is better than our prof lectures readings ❤
Thank you so much this was so straight forward
When the yield is going down the unit price should increased. So farmers can earn more profit because corn & soybean have inelastic type demand curve.
Am I correct sir?
Yes I think the same can u please confirm professor 😊
No
@@khanfarhan3047 Watch the video again to get it confirmed
Thank you...you have no idea how you made learning elasticity easy for me
Great video! Easy to follow and well produced.
His voice reminds me of Ross from Friends. Great content!
very good helpful i have an exam on friday with your way of teaching ill do more better than before thanks
Most useful video
This video is very useful. Wished I had found this when I was in school.
Slope of the demand curve gives clue of the elasticity type. Curve ( or slope ) formula is rise= P / run = Q. A steep one will be inelastic as price (p) rise more than demand (Q) decrease. (or vica versa)
Since the yield must have decreased, the amount supplied must have decreased in the market. Therefore, the supply curve shifted to the left. As a result, the equilibrium quantity is of a lower amount than the previous quantity demanded. If the demand curve remained the same, then it would be fair to say that the price has increased as a result of the shift in supply. However, if the total revenue increases for farmers because of the increase in price, it would be safe to say that the demand curve was inelastic, at least in the short-term.
This was an amazing video. Keep up the good work and make more.
Thank you so much. The content is easy to follow and engaging.
Welp. I wasted 1 hour of reading and still banging my head against a wall, when I could have just watched 15 minutes and understand it.
Same here
The definition of percent change is incorrect. That error ripples through the whole calculation for elasticity. % change = (Q2 - Q1) / Q1. For example, if Q1= 100, and Q1=150, clearly this is a 50% increase from Q1 to Q2. My formula also gets this result: (150-100)/100 = 50/100 = .5 = 50%. His formula, (Q2-Q1)/((Q2+Q1)/2), yields (150-100)/((150+100)/2)=50/125=.4=40%, which is clearly wrong.
Yes, finally someone else has noticed. I solved one of the examples and my answer was different from the one given in the video and I doubted my definition of percent change.
This is really better , Love from India 🥰
So there is a drought yet farmer can maximize revenue by raising the price so it has to be an inelastic demand curve?
KenWorkProduction I believe the same thing
In US yes, due to use of corn syrup and methanol in gasoline.
Another good example is gasoline, because there's hardly a substitute for it
Thank you. It is so beneficial for me to understand elasticity. Keep going.
God bless you! This, plus reviewing the lecture 2x and reading correlated chapters in Economics for Dummies, I can do this!
Yes you can! Keep up the work - econ is not easy but it's worth the effort.
-Roman
Hats off the best teachers ever, and here I am paying thousands for my professor not even coming to lectures 💀
How do I do this on a calculator?
So is so easy and interactive to understand! Could you still help me out on this one?
Product falls to 6$ to 8$ causing demand to extend from 1250 to 12500.
Finally I`m saved. Thanks a lot sir
I love your courage
Wow this was incredibly helpful! Thank you!
Thank you, very useful
thank you so much, i really understand the concepts better now!!
Its great that you can download the video!
Waoo it's so clear, thanks proffesor 😀
Nice video. Very helpful
hi, i have a question. if the price elasticity of demand is -1.4 which is negative. is it considered to be inelastic because its less than one, or is it elastic because we don't consider the negative and we only take the number so its going to be greater than one. thank you
thanks, sir. your teaching is very helpful.
Waw i really enjoy it. Very simple to comprehend
Thank you so much, it was very helpful
Thank you so much for sharing your knowledge. One suggestion, the words/ sentences appearing on the screen blocks me from seeing your written explanations. Anyway thank you again, you're very helpful.
maybe turn off the captions?
What type of elasticity and the formula for?? Price increase,decreAse demand and supply increase
Thank you very much this really helped me.
I really wish you were my professor. Damn! Your presentation is really easy compared to my proffesor.
Very very well explained 🙌👍
Thank you for explaining clearly
Thank you so much sir, now I am able to solve problems
very comprehensive, i appreciate it.
thank you so much sir, this was more understandable
Thank you professor
Thank you very much
It was really helpful.
I have a question. Are the figures and the graphs always relative to the buyers’/market’s behaviors? Like can we actually predict the demand of quantity when we change a price through figures?
Love from India❤️❤️❤️
This was very helpful thank you very much.
Please I'm confused, when he got
-10
95
10
15
How did he calculate it, this is where I am stuck.
Hello Victor, and yes, that part is a bit confusing. However, it all comes to this method he introduced called the *midpoint method*
Instead of just dividing the change in the quantity demanded by the change in price, he does the following:
Main Equation: (Demand2 - Demand1) / (Demand2 + Demand1)/2
Where:
(Demand2 - Demand1) = -10
and the bottom part of the main equation:
(Demand2 + Demand1)/2 represents (90 + 100)/2 = 95.
You can see that by adding demand 2 and demand 1 and dividing that number by two he is finding the midpoint of that change. Just that!
Then you have -10/95 = -0.105
The same applies to the bottom part of the fraction.
@@joaovictorbarbosa9785 thank you so much, I'm really bad at math so I'm just looking to pass this economics exam we'll be having soon
This video came through for me really
very helpful
this will be a inelastic demand curve
because
when demand is high but the supply is low
the price goes up
which makes it an inelastic demand curve
www.npr.org/sections/thesalt/2012/08/14/158752153/secret-side-of-the-drought-corn-farmers-will-benefit
thank you , you made it so understandable
Very nice . Sir make more video's 8 to 13 chapters please fast , My exam is near 😢
Thank you so much for the lecture!
But one question: why when you explained the Midpoint Formula you divided the average by 2? From where did that 2 came from?
Hi Milena, the two is because he is finding the average between 2 numbers, if he was finding the average between 3 numbers it'll be 3 an so on. I hope this is clear?
I have the same problem with questions 3,4. Please! someone help me!
These questions are tricky! My advice is to graph it and use perfectly elastic (horizontal) and perfectly inelastic (vertical) demand curves when you do. For question #3, if the housing supply curve shifts out (because housing is increasing), then the price of housing will stay the same if demand is perfectly elastic and the price will actually drop if demand is perfectly inelastic. Therefore, if you’re trying to pay the lowest price possible, you’d want demand to be inelastic because the price drops with an increase in the supply of housing, or any good. If you just want intuition, think about it this way- if demand is perfectly inelastic, it means that demand isn’t responsive to a change in price. Now apply this logic to question #4. In this question, the supply of housing is decreasing (shifting in). As in question #3, if the demand for housing is elastic, the price will stay the same. If demand for housing is inelastic, the price of housing will increase because this time, unlike question #3, the supply of housing has decreased. If you’re again trying to pay as little as possible, you should hope that demand for housing is elastic. Hope this helps!
-Mary Clare
Can anyone explain the last slide "the secret"
Thanks a lot this is great explanation 👍
Thank you very much! Can you go to Penn State and teach them how to teach this please?!?!?! That said, GO LIONS!
Thnx fr the knowledge
Thank you sir very useful sir
Awsome quality! Thanks
very helpful and thank youy
Can you also explain when demand is perfectly elastic and perfectly inelastic?
this was much better helpful thnc a lot😊😊😊
so much helpful... thank you
you are a lifesaver
why did we use arc elasticity why not point elasticity
Thank you so much !!!!
Can someone please explain the answers to practice questions 3 and 4? Thank you
it took me 5 years to say that I dunno sorry :(
Where did the two come from? @4:55
I have my midterm exam next, but still don't how to calculate elasticity