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.
Examples of elasticity. Price elasticity of demand measures the responsiveness of demand to a change in price. 1  Price inelastic â a change in price causes a smaller % change in demand.  Price elastic â a change in price causes a bigger % change in demand.