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Why the price elasticity of salt is low and price elasticity of Toyota car is high?
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∙ 10y ago
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i) "If the demand curve is vertical, elasticity is zero"Price Elasticity of Demand captures the shift in demand for rises in prices in percentage terms. Therefore if a commodity is such that no matter what price the producer charges the consumer has no alternative but to buy it, then for any price the demand for that commodity remains unaltered, maybe an example is a monopolist salt producer. Therefore the demand curve must be vertical, no matter what the price the quantity demanded is same, hence the price elasticity is zero.
What is price elasticity of vertical demand curve?
its zero I'll do a bit of the explanation: Price Elasticity of Demand captures the shift in demand for rises in prices in percentage terms. Therefore if a commodity is such that no matter what price the producer charges the consumer has no alternative but to buy it, then for any price the demand for that commodity remains unaltered, maybe an example is a monopolist salt producer. Therefore the demand curve must be vertical, no matter what the price the quantity demanded is same, hence the price elasticity is zero. (dq/dp)(p/q) = 0, because (dq/dp) = 0
How useful are the concept of elasticity in running a business successfully?
By the concept of Elasticity in the context of running a business.. the best view is taken in the elasticity of demand. Goods and Services are either highly elastic or low elastic. A good with highly elastic demand will have higher changes to quantities demanded for relatively small changes in price. Whereas something with a lower elastic demand, will not have major changes in demand for a small change in price. So for example, the price of a diamond is highly elastic, a small change in say a fall of diamond prices will have a huge impact, whereas something like salt, an increase or decrease in price will not affect the amount demanded. Thats how useful the concept of elasticity is in running a business successfully.
When was The Price of Salt created?
The Price of Salt was created in 1952.
How many pages does The Price of Salt have?
The Price of Salt has 288 pages.
How many miles from Salt Lake City Utah to Price Utah?
miles from salt lake city to price utah?
What is the price of a greyhound ticket from Salt Lake City to Price city?
198.00
What has happened to the price of salt through time?
Price has become increasingly less.
What is the definition of elasticity of demand?
Demand elasticities refer to the response among consumers of a good to a change in the good's price. "Elastic" demand means that a small increase in price will lead to a relatively large decrease in demand (or vice versa). Goods with elastic demand curves tend to have many close substitutes. For example, demand for "tangerines" is more elastic than demand for "citrus fruits," because if the price of tangerines rises, you can switch to oranges etc. Likewise, the demand for "citrus fruits" is more elastic than the demand for "fruit," because if all citrus fruits rise in price, you can switch to apples, bananas, etc, but if the price of all fruits goes up, you're not likely to buy a leg of lamb instead. Items that are highly "inelastic" may be things that represent small portions of a consumer's budget. If salt goes from $.69 to $3, that is a huge increase in price. But will you stop buying salt? Highly unlikely, because it still represents a small portion of your income, and there are few if any less expensive substitutes. You might not even notice.
What is the price of salt per kg?
fu
When was Salt River High School created?
Salt River High School was created in 1996.
What is the best school in Utah?
East High, Salt Lake, Highland High, Salt Lake, Hunter High, WVC, Timpview High, Provo
