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Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
Wiki User
∙ 14y ago
A perfectly inelastic demand curve will be completely horizontal and means that consumers would any price for a particular good, which is almost impossible. The closer to being horizontal a demand curve is, the more inelastic the demand.
Wiki User
∙ 14y ago
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Show a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
See the related link. A perfectly inelastic demand would be a line straight up and down. That would show that demand is constant regardless of the price.
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
Explain the difference between price elasticity of demand and the slope of a demand curve?
Price elasticity is a specific type of slope of the demand curve. A perfectly inelastic demand means that the quantity will not change with the price. This line is perfectly vertical. A perfectly elastic demand curve is horizontal and means that at any given quantity, there is only one price. Also, a slope gets steeper, demand becomes more inelastic.
How can elasticity help explain why drug interdiction?
Q supplied decreases Eq price lesser Quantiy cos Qd is Inelastic means drug dealers have higher TR and Increase expenditure for addicts which is financed by drug related crimes
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
Show a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
See the related link. A perfectly inelastic demand would be a line straight up and down. That would show that demand is constant regardless of the price.
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
What is the meaning of illustrating?
One who illustrates.
Explain the difference between price elasticity of demand and the slope of a demand curve?
Price elasticity is a specific type of slope of the demand curve. A perfectly inelastic demand means that the quantity will not change with the price. This line is perfectly vertical. A perfectly elastic demand curve is horizontal and means that at any given quantity, there is only one price. Also, a slope gets steeper, demand becomes more inelastic.
How can elasticity help explain why drug interdiction?
Q supplied decreases Eq price lesser Quantiy cos Qd is Inelastic means drug dealers have higher TR and Increase expenditure for addicts which is financed by drug related crimes
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
Using the concept of elasticity explain how a tax on gasoline would affect firms and consumers Who would pay the larger burden of the tax?
First, a quick discussion on elasticity of demand:When demand for an item is perfectly elastic, as prices increase the demand for the item decreasesWhen demand for an item is perfectly inelastic as prices increase the demand for the item does not changeIn the real world, few items are perfectly elastic or perfectly inelastic. Gasoline is an interesting item when it comes to elasticity. Gas is nearly perfectly inelastic at some levels of consumption because most people need to use it to get to work. This is starting to change however because as technology develops alternative fuels gas may become much more elastic. At some levels of consumption gas becomes elastic, for example if prices are too high some people will choose to skip a vacation soas not to consume gas.Now to explain elasticity of demand and taxes:When demand is perfectly inelastic, all of the tax will be passed on to the consumer.When demand is perfectly elastic, all of the tax will be passed on to the to the producer.So now to answer the question as to who would pay the larger burden of the tax. Right now (11/2009) gasoline is much more inelastic than it normally is (although it usually is still quite inelastic). For this reason, the majority of the tax on gasoline will be paid by the consumer.
Explain Price Elasticity of Demand?
Well, the definition of elasticity (in the context of economics) is a fluctuation in consumer demand relative to changes in price. A product is considered elastic if a small price change has a large impact on demand (ratio of +1), and vice versa; it is considered inelastic if change in price has little impact on demand (ratio of -1). It is usually compared to a rubber band. Now, elasticity of demand is based on several factors on whether or not it is elastic: Availability of substitutes: electricity or no electricity, this or that pizza joint Relative Importance: simply, opportunity cost. Necessity vs. Luxury: Necessity is inelastic whereas luxury is elastic. Change over Time: market doesn't always change quickly. Marketing techniques: techniques to sell product, such as endorsements, humor, beauty appeal, etc. If anyone can help to make this more clear, please do so.
Explain the percentage Method and total outlay method for measurement of Elasticity of demand with the help of sutable illustration?
formula for the arc elasticity of demand
Elasticity of demand and its applications?
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explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
