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.
(1) The Percentage Method: The price elasticity of demand is measured by its coefficient E p. This coefficient E p measures the percentage change in the quantity of a commodity demanded resulting from a given percentage change in its price: Thus. Where q refers to quantity demanded, p to price and â to change. If E p p p = 1 demand is unitary elastic.
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.