Elasticity of the demand / offer

Saturday, January 11, 2003

Elasticity of the demand:

E_cpx = - ((C₁ - C₀) / C₀) / ((P₁ - P₀) / P₀)) which can be written as: E_cpx = - %ΔC / %ΔP where:

C₁ - the demand in the current period;

C₀ - the demand in the initial period;

P₁ - the price in the current period;

P₀ - the price in the initial period;

And the elasticity of the offer:

E_opx = ((O₁ - O₀) / O₀) / ((P₁ - P₀) / P₀) also written as: E_opx = %ΔO / %ΔP where:

O₁ - the offer in the current period;

O₀ - the offer in the initial period;

P₁ - the price in the current period;

P₀ - the price in the initial period;

And no… I haven’t gone mad. Yet… Just wanted to write these down. For further reference. Hahaha.