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**Date:** Jan 18 2021, 7:50 am

## Solving Elasticity Of Demand Using Differential Calculus Method

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Solving Elasticity Of Demand Using Differential Calculus Method
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**Solving Elasticity Of Demand Using Differential Calculus Method.**by

**expmercy**(

**f**): 11:03am on December 14

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**Android:** https://bit.ly/2U0hH4D

**iOS Users:** https://apple.co/2NaFgUD

Note: I'll answer mathematical questions on my notebook, snap and then post it here, while theorical questions would be typed and posted.

As times goes, I'll try and bring people who are more knowledgeable in this field.

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 11:06am on December 14

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 11:49am on December 14

**ELASTICITY OF DEMAND**

[i]Elasticity of demand may be said to be the degree of responsiveness of demand to changes in all factors that influences or affect demand. Does the definition make sense to you? Let me break it down. To what extend and at what rate do the consumers respond to changes that affect demand. Do they respond negatively or positively? I'd want you to go through the definition carefully. Read it word by word for better understanding.

There are 3 types of demand. They are:

1. Price elasticity of demand---Ed

2. Income elasticity of demand---Ed

3. Cross price elasticity of demand---EAB

-----Price elasticity of demand

It is simply the degree of responsiveness of demand to a change in price of the whole commodity or the ratio of a percentage change in quantity demanded to a percentage change in price. Confused?? It means, when the

**price**of a commodity increases or decreases, how do consumers respond.

Types of price elasticity

1. Elastic---Ed>1 i.e if you solve your question and the answer you get is greater than 1, then your demand is elastic.

2. Inelastic---Ed

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 12:12pm on December 14

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 12:14pm on December 14

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 12:22pm on December 14

1. Percentage method(the one I consider to be the best for waec candidates as it draws more marks).

2. Point method(best for jamb candidates. it's a very fast method of solving.

3. Arc method

4. Differential calculus method, which is the only method I'd be using today. This method can't be implied to solve all questions.

I'll be posting pictures of the methods

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 12:55pm on December 14

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**Sirneij**(

**m**): 1:19pm on December 14

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**elhero**(

**m**): 1:45pm on December 14

A. The same as equilibrium supply

B. Greater than equilibrium supply

C. Less than the equilibrium supply

D. Determined later by government

E. None of these

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 1:45pm on December 14

**[ @Sirneij: ]** Thumb up, sis! I believe that you're doing a great job there albeit, am not a student of economics.

Thanks *wink*

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 1:47pm on December 14

Given a market demand and supply equation as:

Qd=20-3p

Qs=10+2p

Find the price elasticity of demand.

I'm gonna solve it using differential calculus method

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**elhero**(

**m**): 1:51pm on December 14

A. Whose quality is low

B. Consumed by very poor people

C. Whose consumption falls when cunsumers' income rises

D. Which satisfy only the basic needs

E. None of the above

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 2:03pm on December 14

**[ @elhero: ]** Inferior goods are referred to in Economics as goods

A. Whose quality is low

B. Consumed by very poor people

C. Whose consumption falls when cunsumers' income rises

D. Which satisfy only the basic needs

E. None of the above

Sorry for the late response sir. I was writing the solution to the elasticity question.

Inferior goods are goods or commodities in which quantity demanded decreases as consumer money income rises and vice versa I.e consumers money income and quantity demanded are negatively related.

You should be able to answer the question with the definition

Obviously, the answer is C

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 2:06pm on December 14

**[ @elhero: ]** Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be

A. The same as equilibrium supply

B. Greater than equilibrium supply

C. Less than the equilibrium supply

D. Determined later by government

E. None of these

C is the answer

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 2:17pm on December 14

Qa=100-5Pa-3Pb

Qb=40-2Pa+0.5y

If Pa=#3, Pb=#4 and y=#300,

Calculate:

a.price elasticity of demand of commodity A.

b.income elasticity of demand of commodity B

c.cross elasticity of demand for commodity A with respect to the price of commodity B.

Someone should try the above question. There's no harm in trying.

**Re: Solving Elasticity Of Demand Using Differential Calculus Method.**by

**donnybee**(

**f**): 2:30pm on December 14

snap your solution and let's see

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