Point elasticity

(noun)

The measure of the change in quantity demanded to a very small change in price.

Related Terms

Examples of Point elasticity in the following topics:

  • Calculating Elasticities

    • The basic elasticity formula has shortcomings which can be minimized by using the midpoint method or calculating the point elasticity.
    • The point elasticity is the measure of the change in quantity demanded to a tiny change in price.
    • It is the limit of the arc elasticity as the distance between the two points approaches zero, and hence is defined as a single point.
    • The point elasticity can be calculated with the following formula:
    • To calculate the arc elasticity, you need to know two points on the demand curve.

  • Interpretations of Price Elasticity of Demand

    • Perfectly inelastic demand is graphed as a vertical line and indicates a price elasticity of zero at every point of the curve.
    • Since PED is measured based on percent changes in price, the nominal price and quantity mean that demand curves have different elasticities at different points along the curve.
    • In this case the PED value is the same at every point of the demand curve.
    • The PED value is the same at every point of the demand curve.
    • The price elasticity of demand for a good has different values at different points on the demand curve.

  • Stability and Range of Motion at Synovial Joints

    • The elastic energy stored in the Achilles tendon aids humans in bipedal ambulation.
    • However, over the past two decades, much research has focused on the elastic properties of tendons and their ability to function as springs.
    • During the last portion of the stride, as the foot undergoes plantarflexion (pointing the toes downward), the stored elastic energy is released.

  • Measuring the Price Elasticity of Demand

    • The own-price elasticity of demand is often simply called the price elasticity.
    • The following formula is used to calculate the own-price elasticity of demand:
    • However, economists often disregard the negative sign and report the elasticity as an absolute value.
    • There are a few other important points to note about the coefficient value provided by this formula.
    • Similarly, at high prices and low quantities, PED is more elastic .

  • Consumer Choice and Utility

    • This is the elasticity at a point on the demand (point B) for a specific price ($4) and quantity (6 units).
    • The coefficient of "own" price elasticity is unique to each point on the demand function.
    • To calculate EP as the price falls from $8 to $4 (a move from point A to point B in Figure IV.A.10):
    • A useful short cut to understanding the relative elasticity along a demand function is to use the mid-point.
    • At point H (the mid-point of the demand at one half P1 and Q1) the value of EP is –1.

  • Hooke's Law

    • In mechanics (physics), Hooke's law is an approximation of the response of elastic (i.e., springlike) bodies.
    • Many materials obey this law of elasticity as long as the load does not exceed the material's elastic limit.
    • Materials for which Hooke's law is a useful approximation are known as linear-elastic or "Hookean" materials.
    • It's possible for multiple springs to act on the same point.
    • The pictures of spring states at the bottom of the graph correspond to some points of the plot; the middle one is in the relaxed state (no force applied).

  • Elastic Collisions in One Dimension

    • It important to understand how elastic collisions work, because atoms often undergo essentially elastic collisions when they collide.
    • On the other hand, molecules do not undergo elastic collisions when they collide .
    • The mathematics of an elastic collision is best demonstrated through an example.
    • At this point we see that $v_{2f}$ is still an unknown variable.
    • At this point we have successfully solved for the final velocity of the second particle.

  • Fracture

    • Fracture is caused by a strain placed on an object such that it deforms beyond its elastic limit and breaks.
    • When a strain is applied to a material it deforms elastically proportional to the force applied.
    • The zone in which it bends under strain is called the elastic region.
    • Past that point, if more strain is added, the object may permanently deform and eventually fracture.
    • The final recorded point is the fracture strength.

  • Elastic Collisions in Multiple Dimensions

    • To solve a two dimensional elastic collision problem, decompose the velocity components of the masses along perpendicular axes.
    • As stated previously, there is conservation of total kinetic energy before and after an elastic collision.
    • In this example, we consider only point masses.
    • Now we have gotten to a point where we have two equations, this means that we can solve for any two unknowns that we want.
    • We also know that because the collision is elastic that there must be conservation of kinetic energy before and after the collision.

  • Definition of Price Elasticity of Supply

    • The state of these factors for a particular good will determine if the price elasticity of supply is elastic or inelastic in regards to a change in price.
    • Supply is "perfectly elastic."
    • An increase in price for an elastic good has a noticeable impact on consumption.
    • The elasticity of a good will be labelled as perfectly elastic, relatively elastic, unit elastic, relatively inelastic, or perfectly inelastic.
    • Differentiate between the price elasticity of demand for elastic and inelastic goods