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# Economics Maths - Interesting Calculus watch

1. Just had an economics lesson with my mathematically inept teacher

We were discussing how price elasticity is calculated along a demand curve.

If we have a demand function (lets just keep it linear)

Which is just like

Where price is depandant upon consumption. If we rearrange to make Consumption the subject as to make calculating Elasticity easier as it is in terms of price not consumption.

So we want to do a kind of differentiation

Elasticity = with respect to

Is this correctish?
2. By the looks of it, you want , and since this can be evaluated fairly easily. Also, and don't actually mean anything What were you trying to do?
3. (Original post by nuodai)
Also, and don't actually mean anything What were you trying to do?
I think it was a clumsy attempt to represent a percentage change e.g. (change in value ÷ original value) x 100.
4. (Original post by Mr M)
I think it was a clumsy attempt to represent a percentage change e.g. (change in value ÷ original value) x 100.
Yep

What I am looking for is

for a linear function
5. (Original post by turn and fall)
Just had an economics lesson with my mathematically inept teacher

We were discussing how price elasticity is calculated along a demand curve.

If we have a demand function (lets just keep it linear)

Which is just like

Where price is depandant upon consumption. If we rearrange to make Consumption the subject as to make calculating Elasticity easier as it is in terms of price not consumption.

So we want to do a kind of differentiation

Elasticity = with respect to

Is this correctish?
Yes but the used form of it is:

that is the first derivative of the demand by price at the given point
multiply by the priice of the unit demand (quantity) at the given point.
6. (Original post by ztibor)
Yes but the used form of it is:

that is the first derivative of the demand by price at the given point
multiply by the priice of the unit demand (quantity) at the given point.
Lovely - that is precisely what I got doing it on paper

is elasticity of demand right?
7. (Original post by ztibor)
Yes but the used form of it is:

that is the first derivative of the demand by price at the given point
multiply by the priice of the unit demand (quantity) at the given point.
What this guy said. To bad you'll never touch any of this on your Economics course
8. (Original post by yoyo462001)
What this guy said. To bad you'll never touch any of this on your Economics course
I try to make it interesting.

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The text passage contains a discussion about calculating price elasticity using calculus in the context of a linear demand function. The passage includes a mathematical question about the correct formula for elasticity and whether the approach taken is correct.
single_question_with_answer
Given a text passage, determine:
    1. If it contains a mathematical question (including word problems or calculations)
    2. If an answer to that mathematical question is provided in the text

First, describe the content structure you found in 1-2 sentences.

Then provide your analysis in the following format:
TYPE: <one of the following values>
- NO_QUESTION
- SINGLE_QUESTION
- SINGLE_QUESTION_WITH_ANSWER
- MULTIPLE_QUESTIONS
- MULTIPLE_QUESTIONS_WITH_ANSWERS
system
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 You are Here: Home >< Maths

# Economics Maths - Interesting Calculus watch

1. Just had an economics lesson with my mathematically inept teacher

We were discussing how price elasticity is calculated along a demand curve.

If we have a demand function (lets just keep it linear)

Which is just like

Where price is depandant upon consumption. If we rearrange to make Consumption the subject as to make calculating Elasticity easier as it is in terms of price not consumption.

So we want to do a kind of differentiation

Elasticity = with respect to

Is this correctish?
2. By the looks of it, you want , and since this can be evaluated fairly easily. Also, and don't actually mean anything What were you trying to do?
3. (Original post by nuodai)
Also, and don't actually mean anything What were you trying to do?
I think it was a clumsy attempt to represent a percentage change e.g. (change in value ÷ original value) x 100.
4. (Original post by Mr M)
I think it was a clumsy attempt to represent a percentage change e.g. (change in value ÷ original value) x 100.
Yep

What I am looking for is

for a linear function
5. (Original post by turn and fall)
Just had an economics lesson with my mathematically inept teacher

We were discussing how price elasticity is calculated along a demand curve.

If we have a demand function (lets just keep it linear)

Which is just like

Where price is depandant upon consumption. If we rearrange to make Consumption the subject as to make calculating Elasticity easier as it is in terms of price not consumption.

So we want to do a kind of differentiation

Elasticity = with respect to

Is this correctish?
Yes but the used form of it is:

that is the first derivative of the demand by price at the given point
multiply by the priice of the unit demand (quantity) at the given point.
6. (Original post by ztibor)
Yes but the used form of it is:

that is the first derivative of the demand by price at the given point
multiply by the priice of the unit demand (quantity) at the given point.
Lovely - that is precisely what I got doing it on paper

is elasticity of demand right?
7. (Original post by ztibor)
Yes but the used form of it is:

that is the first derivative of the demand by price at the given point
multiply by the priice of the unit demand (quantity) at the given point.
What this guy said. To bad you'll never touch any of this on your Economics course
8. (Original post by yoyo462001)
What this guy said. To bad you'll never touch any of this on your Economics course
I try to make it interesting.

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Updated: September 30, 2010
Today on TSR

### Complete university guide 2019 rankings

Find out the top ten here

Poll
Useful resources

## Make your revision easier

### Maths Forum posting guidelines

Not sure where to post? Read the updated guidelines here

### How to use LaTex

Writing equations the easy way

### Study habits of A* students

Top tips from students who have already aced their exams

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user
The text passage contains a discussion about calculating price elasticity using calculus in the context of a linear demand function. The passage includes a mathematical question about the correct formula for elasticity and whether the approach taken is correct.

TYPE: SINGLE_QUESTION_WITH_ANSWER