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Does the existence of a bandwagon effect makes demand more price elastic at each price?
Wiki User
∙ 11y ago
Yes, it certsinly does. The demand curve will be more elastic if there is a bandwagon effect than if the demand is based only on the functional attributes of the commodity.
"BANDWAGON, SNOB, AND VEBLEN EFFECTS IN THE THEORY OF CONSUMERS' DEMAND" (Leibenstein, 1950)
Wiki User
∙ 11y ago
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What is Bandwagon Effect and Snob Effect. How do they effect the Demand for goods?
A psychological phenomenon whereby people do something primarily because other people are doing it, regardless of their own beliefs, which they may ignore or override. The bandwagon effect has wide implications, but is commonly seen in politics and consumer behavior is BANDWAGON effect where as Situation where the demand for a product by a high income segment varies inversely with its demand by the lower income segment.is SNOB EFFECT
What effect does the availability of many good substitutes have on the elasticity of demand for a good?
Demand is elastic
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Why demand for soft drink as a whole inelastic but demand for Coca Cola is elastic?
the demand for cold drink as whole is inelastic bcoz the price wont have much effect on its demandbt price for coca cola is elastic because if pric of coca cola will increase then its substitute pepsi is available
How elasticity of demand effect managerial decisions?
Elasticity of demand measures how much demand for a product will change if the price of that product is changed. Something highly elastic will be greatly affected by price changes (something like a hotdog for example, if a vendor raises his price then demand will drop because people can go elsewhere-demand is elastic). So management must be aware of how consumers will react to price changes. Normally, lowering the price of a good will bring in more customers if the demand for that good is elastic. If it is inelastic, then a lower price will not increase demand much.
What is Bandwagon Effect and Snob Effect. How do they effect the Demand for goods?
A psychological phenomenon whereby people do something primarily because other people are doing it, regardless of their own beliefs, which they may ignore or override. The bandwagon effect has wide implications, but is commonly seen in politics and consumer behavior is BANDWAGON effect where as Situation where the demand for a product by a high income segment varies inversely with its demand by the lower income segment.is SNOB EFFECT
What effect does the availability of many good substitutes have on the elasticity of demand for a good?
Demand is elastic
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
How is the Nursing Enrollment Trend in the Philippines?
It should go down as there is zero nursing demand from the USA and the nursing craze, fad or bandwagon effect is over.
Why demand for soft drink as a whole inelastic but demand for Coca Cola is elastic?
the demand for cold drink as whole is inelastic bcoz the price wont have much effect on its demandbt price for coca cola is elastic because if pric of coca cola will increase then its substitute pepsi is available
What factors affect elastic of demand?
There are plenty of factors affecting elasticity of demand including climate of the area. Other factors that effect elasticity of demand include supply and group of people buying.
How elasticity of demand effect managerial decisions?
Elasticity of demand measures how much demand for a product will change if the price of that product is changed. Something highly elastic will be greatly affected by price changes (something like a hotdog for example, if a vendor raises his price then demand will drop because people can go elsewhere-demand is elastic). So management must be aware of how consumers will react to price changes. Normally, lowering the price of a good will bring in more customers if the demand for that good is elastic. If it is inelastic, then a lower price will not increase demand much.
What is the definition of perfect elastic?
AKA Infinite elasticity of demand. Means a change in price will not effect quantity demanded. Such as necessary goods/services to survival.
What questions is the price elasticity of demand designed to answer?
Price elasticity of demand is used to determine how changes in price will effect total revenue. If demand is elastic(>1) a change in price will result in the opposite change in total revenue.(+P=-TR) When demand is unit elastic(=1) a change in price wont change total revenue. If demand is inelastic a change in price will result in a change in total revenue in the same direction.(+P=+TR)
Exception to the law of demand?
Exceptions to the law of demand are : 1. Giffen goods 2. Veblen effect 3. Speculative products 4. Life saving drugs or emergency products 5. Snob effect - conspicuous consumption 6. Bandwagon effect DEFINITIONS Giffen goods - are products that people continue to buy even at high prices due to lack of substitute products Veblen effect - people tend to buy expensive goods to show off their status - conspicuous consumption Snob effect - some buyers have adesire to own unusual or unique products to show that they are different from others Bandwagon effect - prefernce for a particular product increases as the the number of buyers purchasing the product increases BHUVANA SRINIVASAN
What is an example of bandwagon?
The bandwagon effect literally means jump on the wagon filled with band members of circus clowns. Then one day a ring master named Dan Rice used the phrase jump on the bandwagon because whatever complaint the circus clown had the other clown followed. So there for the bandwagon effect is just when any persuasive element being advertised or shown is capable of persuading any body to join with that movement.
What are some examples of bandwagon effect?
"If Jimmy was going to jump off a cliff, would you do that too?"
