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What will happen if there is an increase in demand for a product who's supply is perfectly elastic?
Wiki User
∙ 14y ago
The quantity of the the products bought tends to fluxuate a lot. The prices tend to stay somewhat stable. It is opposite for inelastic demand,
Wiki User
∙ 14y ago
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When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Demand and its types?
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
Different degrees of elasticity of demand?
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
What is the mathematical definition of perfectly elastic demand?
If ep = dQ/dP.P/Q = infinity, the demand is perfectly elastic.
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Demand and its types?
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
Different degrees of elasticity of demand?
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
What is the mathematical definition of perfectly elastic demand?
If ep = dQ/dP.P/Q = infinity, the demand is perfectly elastic.
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
What is the definition of perfectly elastic demand?
A perfectly elastic demand is one whos demand curve is a perfectly horizontal line. This means that at the same price for the item, the consumer is willing to buy more and more even at that same price.
What goods or services might a tax increase be hardest to pass on to consumers?
a product with elastic demand
A price cut will increase the revenue a firm receives if the demand for its product is?
Either elastic or inelastic
If the elasticity equals 0 is demand perfectly elastic or perfectly inelastic?
it is perfectly inelastic
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
What is the Four determinants of price elasticity of demand?
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
