in oligopoly what is the nature of price elasticity
Explain how price and output decision are taken under conditions of oligopoly.
Oligopoly
Oligopoly is a market from where large numbers of buyers contact few sellers for the purpose of buying and selling things. The different types are a pure oligopoly, a differentiated oligopoly, a collusive oligopoly, and a non-collusive oligopoly.
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
Explain how price and output decision are taken under conditions of oligopoly.
Oligopoly
Oligopoly is a market from where large numbers of buyers contact few sellers for the purpose of buying and selling things. The different types are a pure oligopoly, a differentiated oligopoly, a collusive oligopoly, and a non-collusive oligopoly.
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
There must be a change in the price to calculate the price elasticity. Elasticity depends on the changes in the demand of a good or service based on the change in the price of a good or service.
distinguish between price elasticity of demand and income elasticity of demand
Perfect competition is perfectly elastic (taken from my Economics textbook)...still searching on the other three.
Perfect competition is perfectly elastic (taken from my Economics textbook)...still searching on the other three.
An oligopoly is characterized by a market with a few firms having a negligible effect on price.
The price elasticity refers to the change in demand due to the change in price. The income elasticity of demand on the other hand refers to the change in demand due to the change in income.
The price elasticity of salt is lower than that of the Toyota car because by changing the unit of measurement of salt leaves the elasticity value the same.