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The demand for beer is elastic.
Beer is not a necessity good and therefore demand is highly affected by price. A good demonstration of this is the heavy summer price competition between manufacturers and the popularity of discount brands.
It's regulated by state taxes.
Beer is elastic because it is not a necessity for survival and because there are many substitutes for beer (ie red wine, champagne), demand is highly affected by price changes.
What else can I help you with?
When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
When demand is elastic?
The demand is elastic when the price is low. So people will buy more good so that it's demand will become more elastic. Moreover ,the demand is elastic when there are some new inventions.
Is the price and demand for junk food elastic or inelastic?
elastic
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
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
What is Elastic demand?
Elastic demand means something increases or decreases as the price of an item goes down or up.
If a good increase in price and demand drops is the demand inelastic or elastic?
If a good experiences a price increase and a significant drop in demand, it indicates that the demand for that good is elastic. Inelastic demand would typically show little change in quantity demanded despite price fluctuations. Elastic demand means consumers are sensitive to price changes, leading to a considerable reduction in demand when prices rise.
Is the concept of unit elastic versus elastic demand better understood through a comparison of their respective price sensitivity levels?
Yes, the concept of unit elastic versus elastic demand is better understood through comparing their price sensitivity levels. Unit elastic demand occurs when the percentage change in quantity demanded is equal to the percentage change in price, while elastic demand occurs when the percentage change in quantity demanded is greater than the percentage change in price.
What are the types of price elasticity of demand?
there are five types.1).perfect elastic demand,2)perfect inelastic demand,3).relatively elastic demand,4).relatively inelastic demand4).unity elastic demand
1- If the price elasticity of demand for The Wall Street Journal is -13 demand is said to be a elastic. b unit elastic. c perfectly elastic. d inelastic?
If the price elasticity of demand for The Wall Street Journal is -13, demand is said to be elastic (option a). This means that a 1% increase in price would lead to a 13% decrease in quantity demanded, indicating a high sensitivity to price changes. Elastic demand typically has an elasticity greater than 1 in absolute value.
What is The Total Revenue Rule?
if a price cut decreases total revenue, demand is elastic. if a price cut decreases total revenue, demand is inelastic. if a price cut leaves total revenue unchanged, demand is unit elastic.
Along a linear demand curve as the price rises demand becomes more?
elastic
