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When is price elasticity inelastic?
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
Explain elasticity of demand in your own words?
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.
If a demand for a product is elastic the value of the price elasticity coefficient is?
greater than one
What is the total revenue test for elasticity?
I assume that when you say "elasticity," you mean "price elasticity of demand."Raise price a little. If total revenue goes up, you're in the INELASTIC region (where absolute value of elasticity is greater than 1). If it goes down, you're in the ELASTIC region.
Income Elasticity of Supply and Demand?
The price elasticity of supply (or demand) is the percentage change in supply/demand for a one-percentage change in price. Eg, if the price elasticity is 1, a 1% change in the price of a good causes a 1% drop in price. (Note that elasticity is given in absolute value, since it is usually negative.)
When is price elasticity inelastic?
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
Why the price elasticity of salt is low and price elasticity of Toyota car is high?
The price elasticity of salt is lower than that of the Toyota car because by changing the unit of measurement of salt leaves the elasticity value the same.
Explain elasticity of demand in your own words?
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.
If a demand for a product is elastic the value of the price elasticity coefficient is?
greater than one
What is the total revenue test for elasticity?
I assume that when you say "elasticity," you mean "price elasticity of demand."Raise price a little. If total revenue goes up, you're in the INELASTIC region (where absolute value of elasticity is greater than 1). If it goes down, you're in the ELASTIC region.
How do you calculate Price elasticity of demand?
calculate the following price elasticity of for a price increase from $5-6, 6-7, 7-8 and verify your answer using the total revenue approach:
Income Elasticity of Supply and Demand?
The price elasticity of supply (or demand) is the percentage change in supply/demand for a one-percentage change in price. Eg, if the price elasticity is 1, a 1% change in the price of a good causes a 1% drop in price. (Note that elasticity is given in absolute value, since it is usually negative.)
If the value of the cross price elasticity of demand between two goods is approximately zero they are considered?
unrelated
What happens when the value is greater than one in elasticity?
it means that price is elastic. Price elastic means that a little change in the price will cause a substantial change in the quantity demanded.
What is the value of the long term modulus of elasticity of grade 35 concrete?
According to IS 456-2000 the value is square root of 5700fck
What is the price elasticity of demand for a monopolist?
Elasticity of demand is critical in determining the price which maximizes profits.The monopoly pricing rule says to set (P-MC)/P=1/e, where e is the ABSOLUTE VALUE of the price elasticity of demand. (Remember, price elasticities are negative.)Note that MC is the marginal cost at the quantity produced. If it's not constant, some calculation is required to figure out how much Q to make.
If absolute value of price elasticity is greater than 1 then why would an increase in price would lead to a decrease in revenue and a decrease in price will have the opposite effect?
Elasticity is defined as the percentage change in quantity for a given percentage change in price. If price goes up by 1% and quantity goes down by 2%, less revenue is generated, since (1.01*P)* (0.98*Q) < P*Q.
