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It could mean quite a few things. There is Income Elasticity of Demand, Price Elasticity of Demand. etc. Price Elasticity of Demand is the most popular, and is what people generally are referring to when they make incomplete statements like this. Price elasticity of demand, according to my understanding is the percentage change in demand due to a percentage change in price (or the prefix to the "elasticity of demand" statement). Caution must be taken however in determining this percentage change as the base value in the computation may, and usually is the average price of the good prior to the change, and not just the last price before the change. Ask your examiner what the requirements are, before you answer the question.
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Meaning of elasticity?
It measures the sensitivity of one variable with respect to another, e.g. own price elasticity of demand measures the sensitivity of demand for a commodity with respect to its own price.
What is the determinants of price elasticity of demand?
the major determinants of price elasticity of demand Use own your own help and VU handouts, and listen to VU lecture carefully
Are cross price elasticity of demand and price elasticity of demand same?
No, cross price elasticity of demand and price elasticity of demand are not the same. Price elasticity of demand measures how the quantity demanded of a good responds to changes in its own price, while cross price elasticity of demand measures how the quantity demanded of one good responds to changes in the price of another good. The former focuses on a single product, while the latter examines the relationship between two different products, indicating whether they are substitutes or complements.
How is elasticity of supply related to elasticity of demand?
Elasticity of supply refers to the responsiveness of guantity supplied of a commodity to changes in its own price. And the formulafor measuring elasticity of supply percentagechange in quantity supplied/ %change in price
Determinants of own price elasticity of demand?
1. Number of Substitute Products - the greater the number of substitute products, the greater is its own price elasticity of demand. 2. Price of Product Relative to consumers income - the greater the price of product relative to consumers income the greater is it Price Elasticity. 3. Nature of Goods - whether it is luxury good or necessity goods. 4. Passage of Time - the longer the time lapsed the greater Price Elasticity. Hope this answer helps... :)
Meaning of elasticity?
It measures the sensitivity of one variable with respect to another, e.g. own price elasticity of demand measures the sensitivity of demand for a commodity with respect to its own price.
What is the determinants of price elasticity of demand?
the major determinants of price elasticity of demand Use own your own help and VU handouts, and listen to VU lecture carefully
Are cross price elasticity of demand and price elasticity of demand same?
No, cross price elasticity of demand and price elasticity of demand are not the same. Price elasticity of demand measures how the quantity demanded of a good responds to changes in its own price, while cross price elasticity of demand measures how the quantity demanded of one good responds to changes in the price of another good. The former focuses on a single product, while the latter examines the relationship between two different products, indicating whether they are substitutes or complements.
How is elasticity of supply related to elasticity of demand?
Elasticity of supply refers to the responsiveness of guantity supplied of a commodity to changes in its own price. And the formulafor measuring elasticity of supply percentagechange in quantity supplied/ %change in price
Determinants of own price elasticity of demand?
1. Number of Substitute Products - the greater the number of substitute products, the greater is its own price elasticity of demand. 2. Price of Product Relative to consumers income - the greater the price of product relative to consumers income the greater is it Price Elasticity. 3. Nature of Goods - whether it is luxury good or necessity goods. 4. Passage of Time - the longer the time lapsed the greater Price Elasticity. Hope this answer helps... :)
How do i explain how a computer works in my own words?
We can not supply you with "your own words" only YOU can do that.
Explain the say's law in economics?
states that supply creates its own demand.
Explain the law of supply in your own words?
Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc
Explain Archimedes principle in your own words?
something..................
How income elasticity own price and cross price elasticity are related?
According to the total expenditure method; Ep<1 Price of X increases then the expenditure on X increases. Thus the expenditure and demand on Y decreases. Cross price elasticity of X and Y i s negative, therefore they are compliments. Now Taking Ep>1...we can find out the relation of substitutes. Threfore own price and cross price elasticity is not totally independent of one another.
Why do economists pay little attention to the algebraic sign of the elasticity of demand for a good with respect to its own price yet pay careful attention to the algebraic sign of the elasticity of d?
Economists often focus less on the algebraic sign of the price elasticity of demand for a good because it is inherently negative due to the law of demand: as price decreases, quantity demanded increases, and vice versa. Instead, they pay close attention to the elasticity of demand with respect to other factors (like income or prices of related goods) because the sign indicates the nature of the relationship—whether it is complementary or substitutive, for example. Understanding these relationships is crucial for analyzing market behavior and consumer choice.
How can explain the chapter a nations strength in own words?
Generation
