the term real income effect applies to it at that point which define's as an individual cannot keep buying the same quantity of a product of its price rises while there income stays the same
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
The main two are supply and demand
inelastic demand
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
When a price increase has little or no effect on the demand for a product, it is inelastic.
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
The main two are supply and demand
inelastic demand
Simple answer is that volatility is simply price change. Price changes due to supply and demand so when people trade a stock it affects supply and demand.
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
Higher demand, the higher the price goes. Remove the demand for something and then the price drops.
the term real income effect applies to it at that point which define's as an individual cannot keep buying the same quantity of a product of its price rises while there income stays the same
When a price increase has little or no effect on the demand for a product, it is inelastic.
High Demand Lowers QuantityLow Demand increases price and quantity
Elasticity of demand measures how much demand for a product will change if the price of that product is changed. Something highly elastic will be greatly affected by price changes (something like a hotdog for example, if a vendor raises his price then demand will drop because people can go elsewhere-demand is elastic). So management must be aware of how consumers will react to price changes. Normally, lowering the price of a good will bring in more customers if the demand for that good is elastic. If it is inelastic, then a lower price will not increase demand much.
inelastic demand
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.