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Describe how the necessity of a good and the availability of substitutions impact price elasticity?
The Necessity of a good and the availability of substitutions impact price elasticity. The definition of Price Elasticity is a measure of responsiveness of some other variable to a change in price (About.com 2009). The higher the price elasticity, the more responsive buyers are to price changes. High price elasticity implies that when the price of something goes up, buyers will buy less of it and when the price of it goes down, they will buy more. Low price elasticity is the opposite, changes in price have little influence on demand.
When dealing with price elasticity, consider the changes in prices of substitute goods. When the change of a substitute good occurs, a change in the demand of original goods will be affected in the same direction. For instance, if the price of gelato goes up, gelato eaters will switch to ice-cream. If the price of the substitute good goes down, the gelato is now is now cheaper, consumers buy more gelato instead and the quantity of ice-cream demanded is cut. The price increase of a substitute good increases the quantity demanded of the original good and a decrease in the price of a substitute good causes a decrease in the quantity of original good demanded. (Tomlinson, 2009)
REFERENCES
Tomlinson, Steve. (Speaker). (Year). Economics with Steve Tomlinson Transcript: Understanding Markets Demand [Episode 4.2-1]. . Podcast retrieved from http://custom.cengage.com/static_content/OLC/0324833326/data/transcripts/8353.pdf
(2009). About.com. Retrieved October 3, 2009, from http://economics.about.com/od/economicsglossary/g/pricee.htm
What else can I help you with?
If the elasticity of demand for a good at a certain price is greater than One we describe demand as?
Variable
What does the term unitary elastic describe?
Unitary elastic is a demand whose elasticity is exactly equal to 1.
Describe three determinants of demand elasticity?
These three determinants are listed here: nature of commodity -the more perishable a good,lower will its elasticity of demand,middle income groups have highly elastic demand ,goods having alternative uses have elastic demand,for eg.milk
How do elasticity and flexibility differ?
Elasticity refers to the ability of a material to return to its original shape after being stretched or deformed, while flexibility is the capacity of a material to bend easily without breaking. In other words, elasticity is a measure of how well a material can recover from deformation, whereas flexibility indicates how much a material can bend or be deformed in the first place. Both properties are important in different contexts, such as engineering and material science, but they describe distinct characteristics of materials.
Change in supply and quantity supply?
Elasticity of supply refers to the rate at which the amount supplied changes in response to the changes in price. The change in supply and quantity supply is a term that is used in economics to describe the amount of goods or services that are supplied at a given market price.
If the elasticity of demand for a good at a certain price is greater than One we describe demand as?
Variable
What does the term unitary elastic describe?
Unitary elastic is a demand whose elasticity is exactly equal to 1.
What is the definition for elasticity?
Elasticity is a measure of how sensitive one economic variable is to changes in another variable. It is commonly used to describe the responsiveness of quantity demanded or supplied to changes in price, income, or other factors affecting demand or supply.
Describe food security in brief?
Food security refers to a condition that refers to the availability or absence of food.
Why is the word elastic used to describe products with a chaning supply or demand?
When talking about elastic supply in class, we used a rubber band as an example to describe it because of its ability to get back into it's original form. It has 'elasticity'
Describe three determinants of demand elasticity?
These three determinants are listed here: nature of commodity -the more perishable a good,lower will its elasticity of demand,middle income groups have highly elastic demand ,goods having alternative uses have elastic demand,for eg.milk
What is the origin of the word oceanography?
The word was created out of necessity to describe the study and mapping of the ocean. A link to the word's definition and etymology is posted below.
What is a control sugar craving?
A control for sugar craving is used to describe a system or steps undertaken to prevent a sugar craving. These steps can include distraction, using other food substitutions such as fruits, or even motivation.
What is a term to describe when there is a limited amount of something?
Scarcity is a term used to describe when there is a limited amount of something relative to the demand for it. It often leads to competition for the resource and can impact pricing and availability.
Describe how mealtime environments and food presentation can be designed to help an individual to eat and drink?
describe how a person centred approach can support an individual with dementia and different level availability to eat and drink
Describe how soil organisms affect soil?
it makes it easier or more difficult for plants to grow by affecting the availability of things they need.
Why is your skin like a rubber band?
The analogy of skin being like a rubber band is often used to describe its elasticity. Just like a rubber band can stretch and then return to its original shape, skin has a certain degree of elasticity that allows it to stretch and then bounce back, due to the presence of proteins like collagen and elastin.
