Elasticity of Demand Essay Example | Topics and Well Written Essays - 2500 words

Elasticity of Demand - Essay Example When one of these two changes, the other also tends to change. This tendency is very well described by what is popularly known as Law of Demand. The law of Demand is a general law which need not be applicable in all situations. In certain situations this law seems to be unrealistic. The Law of Demand states that when the price increases, the quantity demanded decreases and vice versa, other things remaining the same. The phrase 'other things remain the same' is an important one that it portrays the exceptions of Law of Demand. The Law of Demand, therefore postulates the direction of change in one variable (price or quantity) due to the change in other variable. The law is silent about the magnitude of change. That means, it does not talk anything about the degree by which demand changes as a result of a change in price. Here lies the importance of Elasticity of Demand. This concept tells us the extent to which demand increases or decreases owing to a decrease or increase in price. Th erefore, Law of Demand is a qualitative measurement whereas Elasticity of Demand is a quantitative measurement. As stated earlier, elasticity is a measure of responsiveness of quantity demanded for a change in price. ... Mathematically, it may be computed as: (Moffatt Mike: Elasticity of Demand) To calculate percentage change in quantity and percentage change in price, the following formulae can be sued: % change in quantity = Quantity (new) - Quantity (old) / Quantity (old) (Moffatt Mike: Elasticity of Demand) % change in Price = Price (new) - Price (old) / Price (old) (Moffatt Mike: Elasticity of Demand) Price Elasticity of Demand The Price Elasticity of Demand is the measure of responsiveness of quantity demand of a product as a result of change in its own price. This is also known as Own Price Elasticity of Demand. This theory measures the rate of response of quantity demanded due to change in price. Price Elasticity is a common phenomenon because price and demand are the two closely related variables. In other words, price is the most important determinant of demand. Price of a product and its demand are negatively correlated, which means when price increases, demand decreases and vice versa. Mathematically, price elasticity of demand can be expressed as below: Price Elasticity of Demand = (% Change in quantity demanded)/ (% change in price) (Moffatt Mike: Price Elasticity of Demand) % Change in quantity demanded = Quantity (new) - Quantity (old) / Quantity (old) (Moffatt Mike: Price Elasticity of Demand) % change in price = Price (new) - Price (old) / Price (old) (Moffatt Mike: Price Elasticity of Demand) Significance of Price Elasticity The calculation of price elasticity alone is not sufficient to an economist for decision making. It is a means to an end. Thus, interpretation is more important than computation. The purpose of calculating elasticity is for analyzing how sensitive is the demand for the product due to a

Special Education in United Stated Research Paper

Special Education in United Stated - Research Paper Example lic school enrollment in the 2008-2009 school year, it is also important to note that when compared with the number of students receiving special education services in the 1980-1981 school year, which was 4.1 million, it can only be estimated that more students will need special education services in the coming years (Aud et al, 2011). According to a report done on behalf of the National Dissemination Center for Children with Disabilities, special education is defined as â€Å"instruction that is specially designed to meet the unique needs of a child with a disability.† A â€Å"disability† can be further defined as a physical disability, mental disability, or even a learning disability, in which while everything appears to be functioning on the outside, inside the head of the student whatever messages are sent are not clearly received, whether these messages involve spoken or written words, and can impair the ability of the student to do things such as speak, read, spel l, write, or calculate numbers at the same pace as their peers (Aud et al, 2011). These learning disabilities are further defined by scientific terms and research, given names such as autism, Asperger’s Syndrome, and others (Aud et al, 2011). With the services offered by special education throughout the school systems across the United States today, a means of educating students with any form of disability is now available, and can enable them to not only absorb the information being given to them but also to retain and use that information to their benefit, whether immediately or throughout their life. The individualization of special education is its greatest asset to the educational system, yet it also makes it difficult to give an overall description of what is offered, as well as what it... This paper approves that there can be no doubt that special education has followed its own long and winding road in terms of the services that are offered and the process that takes place. From the days in which those with disabilities were either left to be a burden on their families without a place in the world, to being housed at the expense of others in state institutions, to being allowed to pursue an almost mainstream education alongside their peers, special education has gone from being seen as a social stigma to almost commonplace. This paper makes a conclusion that above all else, a huge debt of thanks and gratitude is owed to the pioneers of special education. To those such as Thomas Gallaudet, who believed that the deaf should not have to grow up in a silent world with no words to sustain them. To John Fisher and Samuel Gridley Howe, who were unwilling to accept that the world of darkness for the blind was the only world they should know. To the politicians and forward-thinkers, the philosophers and the reformers, to everyone who felt that education for all should be the norm, and not an unacceptable, unattainable goal. To those that worked endlessly to make others notice the plight of those left at the mercy of the state, called insane or â€Å"not right† because of disability. No matter what laws are passed, no matter what legislation is put in place and what education is received today because of it, without the people of history and their way of thinking, it would not exist at all.