In this blog assignment, the lesson was on the elasticity of demand. Which has to do with the market value of said good. The variables used to figure out a good’s market value is through the relationship between a change in the quantity demanded and the change in its price. This is how one would determine how elastic ( a good can be sold at a range of prices) or inelastic (limited to what prices the good could be sold) a product/good/service can be…
The formula used to figure out this relationship is Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price.
Here is my example: The Elasticity of Wild Rice; where the average price is $6.25 for 5lb. Let’s say an average of 35lb of wild rice is sold at a local supermarket per day.
I would have graphed it like the blog assignment had asked, but the individual did not make it clear as to how to graph this math topic. I know the equation has to do with percents, but the examples were not interactive enough for me to understand it.
I do know, however, based on my knowledge of the externality based on Macroeconomics studies. Wild rice would be inelastic due to other competitions and substitutes for this uncommon category of rice in the United States.
Did anyone else give the assignment a try? Can you guess how I could have graphed this example? 🤔