0
What do both elasticity of demand and elasticity of supply measure?
Wiki User
∙ 11y ago
Cross price elasticity is a well known economic term. It's a measurement analysis of how the quantity demand of say, one particulat product changes as the price of another product or good changes. It's more or less a realtionship variable.
Wiki User
∙ 10y ago
Wiki User
∙ 12y agoIt describes the relationship between a change in the price of a good and its quantity demanded. So when Good x price goes up by a certain percentage how much less of good x is demanded.
Add your answer:
Earn +20 pts
Difference between arc and point elasticity?
1) Point elasticity is measured by the ratio of the lower segment of the curve below the given point to uppa segment the super part of the curve above the point. 2) Arc elasticity is measured by the use of mid point between the old & the new figures in the case of both prine and qualitiy demonded.
What do positive and negative cross elasticity indicate?
the demand for good A and the demand for good B are both price elastic
Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run?
In the long run, manufacturers and producers can respond to consumer demand by analyzing trends that develop over time. Short-term, this is less practical because adjustments often cannot be made quickly enough to accommodate changes.
What has to happen to both the supply and demand for corn in order for the price to rise?
the supply has to go down and the demand rise
What happens to both the supply and demand as the price decreases?
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
Difference between arc and point elasticity?
1) Point elasticity is measured by the ratio of the lower segment of the curve below the given point to uppa segment the super part of the curve above the point. 2) Arc elasticity is measured by the use of mid point between the old & the new figures in the case of both prine and qualitiy demonded.
What do positive and negative cross elasticity indicate?
the demand for good A and the demand for good B are both price elastic
Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run?
In the long run, manufacturers and producers can respond to consumer demand by analyzing trends that develop over time. Short-term, this is less practical because adjustments often cannot be made quickly enough to accommodate changes.
What has to happen to both the supply and demand for corn in order for the price to rise?
the supply has to go down and the demand rise
What happens to both the supply and demand as the price decreases?
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
What is a vicious circle of poverty show it or explain it both demand and supply sides?
what is a vicious circle of poverty show it or explain from both demand and supply sides
What is the role of supply and demand in pure market capitalism?
Supply and demand both dictate the price of the goods sold in capitalism
Concepts of cross elasticity of demand and income elasticity of demand?
Cross price elasticity of demand measures the responsiveness in the quantity demand of one good when a change in price takes place in another good. Whereas, income of demand responds to the sensitivity of the quantity demanded for certain product in response to a change in consumer goods. Both concepts address the measurement of change in one respect compared to change in another.
Relationship between demand and supply?
1:inverse relationship between supply and demand 2:supply depends upon the demand of a commodity, that it might be positive or negative. 3:supply always depends upon demand but demand never depends to supply. 4:a supply never affects the demand of a commodity but demand always affect to its supply. 5:demand is the initial stage but supply is the stage after demand. 6:supply have a positive relations to price whereas demand has a negative relations with price. 7:supply and price has a direct relations or positive relation. 8:law of supply relates to the price and supply of a particular commodity in a particular time period. 9:price has a connections with demand and supply that it affects both supply in a positive way and demand in a negative way and if price changes then both demand and supply will change. 10:demand curve shows the changes positions of demand in a different price level of a particular commodity where demand schedule also shows the changes positions of demand in a different price level of a particular commodity, hence both have a common objectives to depict the same result in a different way.
What will happen when Aggregate demand and aggregate supply decrease?
When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.
How do you show that in a two good world neither good is inferior?
If the income elasticity of demand is negative for both goods, then they are both not inferior goods.
When is the deadweight loss the greatest?
when both demand and supply are elastic
