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What will be the total higher quantity do in the elastic inelastic and unit-elastic?
Wiki User
∙ 15y ago
The midpoint between elastic and inelastic is unit elastic
Wiki User
∙ 15y ago
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Will a monopolist charge a lower price where demand is price elastic and a higher price where demand is price inelastic?
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
How do wages effect on labor supply?
A higher wage will increase the quantity supplied of labor, however it will not affect the entire labor supply curve. As for individual industries, it depends on the specific labor elasticity. If the Supply is inelastic, a relatively large change in wage will yield a relatively small change in quantity supplied. However, if the labor supply is elastic, a relatively small wage increase will return a relatively large quantity increase.
Possible reasons for variations in elasticity?
Elastic goods are goods where a change in price leads to a change in the quantity demanded. Examples of this would be clothes. If Store X raised their prices, the public would substitute and buy clothes from Store Y instead. Inelastic goods are where a change in the price does not lead to a significant change in the quantity demanded. A good example of this would be medicine. Even if a pharmaceutical company increases their prices, their customers STILL need their medication, so they will still purchase it at the higher price. A change in elasticity can arise from the market for certain products expanding. A good can become more elastic if more substitute goods are introduced to the market. On the other hand, a good can become more inelastic if substitute goods are taken off the market.
What does elasticity of demand mean?
"Elasticity of demand" is the economic term for how much of something people want. If demand is inelastic, people will buy the same amount at any price (think insulin--a diabetic needs it and so will buy it at any price.). If demand is elastic, the price greatly affects how much people will buy (concert tickets for a B-rate band: the higher the price, the less people will come). This is very generalized: the topic is very complex and confusing when explained in economic terms. Recently the demand for gas, which used to be inelastic, has become elastic. The price has raised too high for people to keep buying what they usually did, and so travel plans have been curtailed due to this and less gas has been puchased. Even more recently, gas prices have lowered again, but demand cannot yet be said to be inelastic again. Altogether, inelastic demand does not affect supply, while elastic demand does.
Is the demand for higher education income elastic income inelastic or neither?
It is likely "income elastic" because the reverse is true: the number of people seeking higher education can decrease when the cost of that education goes up (unaffordable). So with more money available to potential students, you should see a rise in the number of college applicants. This has definitely occurred during periods when government grants covered all or part of the expense.
Will a monopolist charge a lower price where demand is price elastic and a higher price where demand is price inelastic?
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
How do wages effect on labor supply?
A higher wage will increase the quantity supplied of labor, however it will not affect the entire labor supply curve. As for individual industries, it depends on the specific labor elasticity. If the Supply is inelastic, a relatively large change in wage will yield a relatively small change in quantity supplied. However, if the labor supply is elastic, a relatively small wage increase will return a relatively large quantity increase.
Possible reasons for variations in elasticity?
Elastic goods are goods where a change in price leads to a change in the quantity demanded. Examples of this would be clothes. If Store X raised their prices, the public would substitute and buy clothes from Store Y instead. Inelastic goods are where a change in the price does not lead to a significant change in the quantity demanded. A good example of this would be medicine. Even if a pharmaceutical company increases their prices, their customers STILL need their medication, so they will still purchase it at the higher price. A change in elasticity can arise from the market for certain products expanding. A good can become more elastic if more substitute goods are introduced to the market. On the other hand, a good can become more inelastic if substitute goods are taken off the market.
What does elasticity of demand mean?
"Elasticity of demand" is the economic term for how much of something people want. If demand is inelastic, people will buy the same amount at any price (think insulin--a diabetic needs it and so will buy it at any price.). If demand is elastic, the price greatly affects how much people will buy (concert tickets for a B-rate band: the higher the price, the less people will come). This is very generalized: the topic is very complex and confusing when explained in economic terms. Recently the demand for gas, which used to be inelastic, has become elastic. The price has raised too high for people to keep buying what they usually did, and so travel plans have been curtailed due to this and less gas has been puchased. Even more recently, gas prices have lowered again, but demand cannot yet be said to be inelastic again. Altogether, inelastic demand does not affect supply, while elastic demand does.
Is the demand for higher education income elastic income inelastic or neither?
It is likely "income elastic" because the reverse is true: the number of people seeking higher education can decrease when the cost of that education goes up (unaffordable). So with more money available to potential students, you should see a rise in the number of college applicants. This has definitely occurred during periods when government grants covered all or part of the expense.
Why do squash balls bounce higher when warm?
because the elastic which is within gets heated thus bouncing higher
Do fleas have muscles that squeeze an elastic material that helps it jump higher?
Dolphin
What core type in a golf ball bounces higher?
The one with elastic bands in it
If a product has a inelastic demand a price increase will cause?
I assume you mean that the demand is inelastic? If so, then the consumer will buy the same amount and pay the higher price. The usual example of this would be insulin (assuming you need a fixed amount to live and there are no alternatives)
Why would a balloon increase in size as it goes higher in the atmosphere?
The quantity of gas inside a balloon is fixed - and is pressurised by the elastic 'shell'. As the air pressure outside the balloon decreases with altitude, the gas inside tries to expand - and the rubber of the balloon stretches - making it bigger.
Can you apply now for economics?
the higher the quantity the lower the suppy
JAne spends all her income on hot dogs and caviar Her demand curve for caviar is inelastic at all prices for caviar Unfortunately the accident at Chernobyl has caused the supply of caviar to fall an?
Since her demand for caviar is inelastic at all prices, she continues to consume it at a higher price, spending a greater share of her income on caviar. She therefore spends a smaller portion of her income on hot dogs. Assuming hot dog prices do not fall due to the accident, her quantity consumed of hot dogs would also fall.
