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Gasoline
gasoline
What_will_happen_to_total_revenue_if_unitary_elastic_over_a_portion_demand_curve_change_upward_by_one_precent
measure of the average responsiveness of quantity to price over an interval of the demand curve. = change in quantity/ Quantity ___________________________ change in price/ Price
Well, the definition of elasticity (in the context of economics) is a fluctuation in consumer demand relative to changes in price. A product is considered elastic if a small price change has a large impact on demand (ratio of +1), and vice versa; it is considered inelastic if change in price has little impact on demand (ratio of -1). It is usually compared to a rubber band. Now, elasticity of demand is based on several factors on whether or not it is elastic: Availability of substitutes: electricity or no electricity, this or that pizza joint Relative Importance: simply, opportunity cost. Necessity vs. Luxury: Necessity is inelastic whereas luxury is elastic. Change over Time: market doesn't always change quickly. Marketing techniques: techniques to sell product, such as endorsements, humor, beauty appeal, etc. If anyone can help to make this more clear, please do so.
Gasoline
gasoline
gasoline
gasoline
b. when demand is highly elastic. (The penetration strategy is used when an elite market does not exist and demand seems to be elastic over the entire demand curve.)
What_will_happen_to_total_revenue_if_unitary_elastic_over_a_portion_demand_curve_change_upward_by_one_precent
measure of the average responsiveness of quantity to price over an interval of the demand curve. = change in quantity/ Quantity ___________________________ change in price/ Price
A monopoly typically produces in the inelastic part of the demand curve because it has control over the quantity supplied and can set prices higher without losing too many customers. This allows the monopoly to maximize its profits by charging higher prices for its products.
Well, the definition of elasticity (in the context of economics) is a fluctuation in consumer demand relative to changes in price. A product is considered elastic if a small price change has a large impact on demand (ratio of +1), and vice versa; it is considered inelastic if change in price has little impact on demand (ratio of -1). It is usually compared to a rubber band. Now, elasticity of demand is based on several factors on whether or not it is elastic: Availability of substitutes: electricity or no electricity, this or that pizza joint Relative Importance: simply, opportunity cost. Necessity vs. Luxury: Necessity is inelastic whereas luxury is elastic. Change over Time: market doesn't always change quickly. Marketing techniques: techniques to sell product, such as endorsements, humor, beauty appeal, etc. If anyone can help to make this more clear, please do so.
They become more and more different over time.
It would depend on the demand for those resources,great the demand the more the market can hike the price.
It would depend on the demand for those resources,great the demand the more the market can hike the price.