The Great Upheaval. A Spontaneous Eruption. It started with a 10% pay cut. When leaders of the Baltimore and Ohio Railroad Company ordered this second reduction in less than eight months, railroad workers in Martinsburg, West Virginia decided they had had enough.
According to this method, âprice elasticity of demand is the ratio of percentage change in the amount demanded to the percentage change in price of the commodity.â. It is also known as the Percentage Method, Flux Method, Ratio Method, and Arithmetic Method.
2 VIP Elasticities<br />Price elasticity of demand: how sensitive is the quantity demanded to a change in the price of the good.<br />Price elasticity of supply: how sensitive is the quantity supplied to a change in the price of the good.<br />Often referred to as âownâ price elasticities.<br /> 6.