00:01
6 .3 number 4 wants you guys to describe elasticity in your own words.
00:05
So to do it in your own words, you should probably try it first and then look at this video to make sure you've included all the information.
00:11
So to start with, let's discuss what elasticity actually is.
00:17
So i'm going to try and type this out.
00:19
There we go.
00:21
Elasticity is how sensitive demand is to a change in price.
00:30
So basically if you increase the price a lot, does the demand for an item go down because people don't want to pay for it? if you decrease the price, does demand go way up because now people are willing to pay for it? and that's what elasticity measures.
00:45
So if price increases, does the demand go down? if price decreases, does the demand for the item go up? these are essentially the two relationships you're trying to look at.
01:07
And how much change...