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Explain why elasticity of demand is such an important concept to marketers who sell a commodity product?

Elasticity of demand is important to marketers because it helps them know the optimal price for the product. When a product is priced too high, the consumers may opt for a competitor's product.


How does the concept of cross-price elasticity differentiate between complements and substitutes in the market?

Cross-price elasticity measures how the price of one product affects the demand for another. For complements, a decrease in the price of one product leads to an increase in demand for the other. This results in a negative cross-price elasticity. For substitutes, a decrease in the price of one product leads to a decrease in demand for the other, resulting in a positive cross-price elasticity.


What is environmental elasticity?

Environmental elasticity is the responsiveness of demand for a product to a change in the environmental impact of the product.


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.


Write one sentence in your own words to explain the concept of globalisation?

Globalisation is the selling of a product around the world


What is unitary elasticity?

The term unitary elastic is used in economics and is also known as unitary elastic demand or unitary elasticity. It is a measure that is used to show the elasticity of the amount demanded of a product to a change in the price of the product.


What is importance of elasticity?

Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.


What is the difference between elasticity and inelasticity of demand?

Inelasticity is a good that you will buy nomatter the price change. Elasticity is when the price of a product increases demand for the product will decrease.


Importance of elasticity of demand?

It is important because if a company doesn't understand their product's elasticity of demand, they are screwed!


Why is determining demand elasticity important in economics?

What are the determined factors of price elasticity of demand


What is importance of cross elasticity?

Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.


Conclusion of price elasticity of demand?

The conclusion of the price of elasticity of demand is the effect of price change based on the revenue it receives. It is based off the demand of the product and the price of the product.