In this module we introduce several tools related to the demand side of the market: Elasticities and Consumer surplus. Elasticities are used to measure the sensitivity of demand to changes in product prices and consumer incomes. Consumer surplus is a dollar value measuring the amount of extra surplus value that accrues to all purchasers of a product at a particular price. These tools are applied later to evaluate outcomes of various market situations.

Demand Measurement Tools Intro -3 minutes

Price Elasticity of Demand - 38 minutes

Cross-Price and Income Elasticities of Demand - 5 minutes

Consumer Surplus Defined - 24 minutes