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How does nature of a commodity influence its Price Elasticity of demand?
Wiki User
∙ 8y ago
Depends on what type of good like perishable or non perishable, durable and non durable.
Wiki User
∙ 11y ago
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Relevance of Income elasticity of demand?
-determine the nature of the commodity -it can be applied in the intersection of marked demand and supply of commodities -help firms to respond to changing economic situations.
Describe three determinants of demand elasticity?
These three determinants are listed here: nature of commodity -the more perishable a good,lower will its elasticity of demand,middle income groups have highly elastic demand ,goods having alternative uses have elastic demand,for eg.milk
What is the determinants of price elasticity of demand?
the major determinants of price elasticity of demand Use own your own help and VU handouts, and listen to VU lecture carefully
Why do economist use percentage change to calculate elasticity of demand?
They use percentage change because of the nature of the unit being described. The elasticity of demand specifies how much percentage demanded changes in response to a 1% increase in price.
Why do economists use percentage change to calculate elasticity demand?
They use percentage change because of the nature of the unit being described. The elasticity of demand specifies how much percentage demanded changes in response to a 1% increase in price.
Relevance of Income elasticity of demand?
-determine the nature of the commodity -it can be applied in the intersection of marked demand and supply of commodities -help firms to respond to changing economic situations.
Describe three determinants of demand elasticity?
These three determinants are listed here: nature of commodity -the more perishable a good,lower will its elasticity of demand,middle income groups have highly elastic demand ,goods having alternative uses have elastic demand,for eg.milk
What is the determinants of price elasticity of demand?
the major determinants of price elasticity of demand Use own your own help and VU handouts, and listen to VU lecture carefully
Why do economist use percentage change to calculate elasticity of demand?
They use percentage change because of the nature of the unit being described. The elasticity of demand specifies how much percentage demanded changes in response to a 1% increase in price.
Why do economists use percentage change to calculate elasticity demand?
They use percentage change because of the nature of the unit being described. The elasticity of demand specifies how much percentage demanded changes in response to a 1% increase in price.
What is the price elasticity in a oligopoly?
in oligopoly what is the nature of price elasticity
Determinants of own price elasticity of demand?
1. Number of Substitute Products - the greater the number of substitute products, the greater is its own price elasticity of demand. 2. Price of Product Relative to consumers income - the greater the price of product relative to consumers income the greater is it Price Elasticity. 3. Nature of Goods - whether it is luxury good or necessity goods. 4. Passage of Time - the longer the time lapsed the greater Price Elasticity. Hope this answer helps... :)
What is the difference between price elasticity and cross elasticity of demand?
Cross price elasticity of demand measures how much demand of one good, say x changes when the price of another good, say y changes, holding everything else constant. For example, you can measure what happens to the demand of bread when the price of milk changes. The cross price elasticity is calculated as the percentage change in the quantity demanded of good x divided by the percentage change in the price of good y. If the cross price elasticity is negative, then we call such goods Complements (example: pizza and soft drinks -- they are consumed together). If the cross price elasticity is positive, then we call such goods Substitutes (example: pizza and burgers -- you usually consume either or). The income elasticity of demand measures the change in the quantity demanded of some good, when the income changes, holding everything else constant. For example you can measure what happens to the demand for expensive red wine when income increases. The income elasticity is calculated as the percentage change in the quantity demanded of the good divided by the percentage change in income. If the income elasticity for a good is positive we call them normal goods. It can be between 0 and 1, and we call it income inelastic demand for goods such as food, clothing, newspaper. If it is above 1, we call it income elastic demand. Examples are the red wine, cruises, jewelry, art, etc. If the income elasticity is negative, this means that as income increases, the quantity demanded for those goods actually decreases, we call those goods inferior goods. Examples are "Ramen noodles", cheap red wine, potatoes, rice. etc.
What does gum have to do with math?
Maybe the elasticity or selling price. Something of that nature.
What determines the Competitive intensity in industry?
Demand and the number of competitors in an industry influence the competitive nature of a business. Another factor to competition is profit margins.
Where is business demand often derived?
The nature of the demand for products differs from consumer demand because it is often derived from consumer demand.
What is revenue and cost?
Cost means price of a commodity which a consumer has to pay in order to get any service from a specific agency. Cost is variable in nature and changes according to demand of goods and supply. While the total profit of an agency in yearly basis is known as revenue.
