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Why is it important for the supplier of goods and service to have information about price elasticity of demand?
Wiki User
∙ 12y ago
In that way the supplier of goods and services, will be able to know how many goods they must produce for the quantity demanded in the economy. They need to know how much price affects the consumers.
Wiki User
∙ 12y ago
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Can you define and calculatethe price elsticity of demand?
Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.
Explain what is meant by Price Elasticity of Demand?
there are broadly classified into five types 1. Perfect price elasticity of demand 2. Perfect price in-elasticity of demand 3. Relative price elasticity of demand 4. Relative price in-elasticity of demand 5. Unity price elasticity of demand
According to the law of supply What does an increase in the price of a good service or resource lead to an increase in?
Supply. If you are a supplier of a good - the price for your good increase - you will produce more to take advantage of this
What does the word elasticity?
The term inelastic refers to the economic principles of elasticity of supply or demand. Elasticity of demand refers to the rate at which a change in price changes the rate at which consumers demand a product. Elasticity of supply refers to the rate at which a change in price changes the rate at which suppliers are willing to supply a good or service. In most cases elasticity can be calculated by dividing the percent change in supply or demand by the percent change in price. In more advanced cases the calculation of elasticity may require partial derivatives. If elasticity is less than 1, then the price change is inelastic. This means the price change was relatively greater than the change in supply or demand. If demand elasticity is less than 1, a business will generally increase the price of its good or service because it knows it can make more money by charging a hire price even after accounting for the customers it would lose because of the price increase. if elasticity is greater than 1, then the price change is elastic. This means the change in demand or supply is relatively greater than the change in price. if elasticity equals 1, then the price change is unit elastic. This means the change in demand or supply is relatively equal to the change in price. Profit maximizing firms generally charge a price the has a unit elastic demand because charging anymore would mean not profit maximizing because they are losing too many customers and charging any less would mean not maximizing profit due to the price being too low. If elasticity equals 0, then the price change is perfectly inelastic. This means that no matter the price, the demand will always be the same (in the case of demand elasticity) or the supply will always be the same (in the case of supply elasticity). Goods that fall into this category are rarer than the first three categories. A good with a perfectly inelastic demand has to be something that the consumers in the market could not live without (literally or figuratively). Two examples are life saving medical treatments and illegal drugs. If elasticity equals infinity (change in price is 0), then the good is perfectly elastic. In this case, even the slightest change in price sends the demand or supply for a good or service plummeting to 0. An (albeit not perfect) example is bottled water. If a bottled water company changes its price from $1 to $1.05 and another company has the same product still readily available for $1, then demand for the $1.05 water will plummet.
Definition of determinants of supply?
Assuming the market is perfectly competitive and there are no government imposed restriction, the quantity supplied will equal the quantity demanded, meaning the quantity demanded by buyers equals the quantity supplied by sellers.
Can you find price elasticity if there is no change in price?
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.
What are common sources of information that customer service practitioners can use to find information about organisations?
directory inquiries,supplier telephone number, leaflet,radio,TV
What is supplier relationships?
It refers to the connection between the supplier and the buyer.
What vending machine supplier provides after sales service?
Vendzone.com will provide after sales service, as well as offering a wide range of different kinds of vending machines. Contact them online for more information.
What is a good horse supply supplier for a new online-only business?
A good horse supply supplier on line should provide your timely delivery and service same with promise they did, this is important. You also need check their spec through actual investigation I think.
What are the processes in ITIL Service Design?
Service Design processes are focused on operational control: • Service Catalogue Management • Service Level Management • Capacity Management • Availability Management • IT Service Continuity Management • Information Security Management • Supplier Management
Why customer service representatives are important in the business?
Customer service representatives is important for the business because they provide all kind of information regarding the product and services.
What are the procedure for sharing personal information with service user other professional and service user's family?
by keeping good record and confidentially is important key to share information,
Can you define and calculatethe price elsticity of demand?
Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.
What is difference between sub-contractor and supplier?
Supplier - someone whose business is to supply a particular service or commodity. Contractor - A person or company that undertakes a contract to perform a service or do a job. Similar, yet different
Is supplier a common noun?
Yes, the noun 'supplier' is a common noun, a general word for a company, organization, or country that provides or sells a product or a service.
Where you find chlorine?
Pool shops. the super market, many garages or service stations, department stores. cleaning chemical supplier's Hardware supplier's
