Talk:Elasticity (economics)

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Hi, see the discussion on Talk:Supply and demand. I'm trying to put a summary of the elasticity concept into that article to help it along to being a featured article. Thanks, Taxman 17:19, Jun 19, 2004 (UTC)

This page sure could use some real world examples! It also, the latter half seems to be far more macro economic than micro; which makes for a bumpy ride. User:Bhyde

1 variables
2 unit elasticity
3 Mathematical Definition
4 Jargon, jargon, jargon

[edit] variables

P is price. What is Q?--Gbleem 05:46, 15 December 2005 (UTC)

Quantity --Feinstein 22:11, 15 December 2005 (UTC)

[edit] unit elasticity

I fail to see how the current diagram depicts unit elasticity. Qwe 08:06, 5 February 2006 (UTC)

I also have a problem with this "simple example". While its true that P/Q remains constant, the difference in slope means that both cannot have the same elasticity at any one price or quantity, since elasticity is the product of the ratio, P/Q, and the slope. I'd like to see this changed, but I am not entirely sure how to demonstrate this easily in a more correct fashion. Sirkha 17:18, 10 December 2006 (UTC)

Actually, they have the same elasticity at all prices; I didn't see it right away, either, but since the intercepts are 0 for both, both are unit elastic. It works out pretty easily if you apply the definition:

$E_{Q,P} = \left|\frac{\partial \ln Q}{\partial \ln P}\right| = \left|\frac{\partial Q}{\partial P}\cdot\frac{P}{Q}\right| = \left|\frac{\Delta Q}{\Delta P}\cdot\frac{P}{Q}\right| = \left|\frac{Q-0}{P-0}\cdot\frac{P}{Q}\right| = \left|\frac{Q}{P}\cdot\frac{P}{Q}\right| = 1$

Maybe there should be a bit more of an explanation in that part of the article? For one thing, it's the product of P/Q and the reciprocal of the slope, which might have been what caused your confusion, Sirkha. --Dirk Gently 03:02, 25 February 2007 (UTC)

[edit] Mathematical Definition

While it is interesting to show what the slope is on the graph, in economics, these two axis are not typically the "x" and "y" axis, but the "P" and "Q" axis. The use of x and y makes it hard to correspond elasticity to price and quantity. Sirkha 17:22, 10 December 2006 (UTC)

[edit] Jargon, jargon, jargon

I think, there are too many jargons that the article is not useful to layperson. I've added what elasticity means in everyday language, rather than what is typically explained in economic classes. __earth ^(Talk) 07:14, 8 April 2007 (UTC)

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Talk:Elasticity (economics)

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Contents

[edit] variables

[edit] unit elasticity

[edit] Mathematical Definition

[edit] Jargon, jargon, jargon

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