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This is a homework question -- but it's an interesting one that's worth thinking about.
The elasticity of demand is the rate at which the quantity demanded changes when the price increases or decreases. It's affected by a number of things, most notably the degree to which the item in question has substitutes, or is "essential" or merely "luxurious". For example, most people will still purchase almost the same amount of gasoline whether the price goes up or down 25%. The demand for gasoline is fairly INELASTIC, because gasoline is fairly essential, with few good substitutes.
Now comes your question about "standard of living": in a word, would you buy -- compared with a rich person -- a much different amount of gasoline than you did before, if the price changed by 25% (and you're poor)? If you're poor, your purchases of gasoline are already cut to the bone, aren't they? So an increase of 25% in price might just force you to accept no gasoline, even if you really need it, whereas a rich person wouldn't notice the price increase. In this case, the poor person's elasticity of demand is GREATER for being poor. It also works in reverse. If now the price of gasoline goes DOWN by 25%, the poor person might find himself able to afford gasoline again, and so increases his quantity of gasoline purchased. Contrariwise, the rich person wouldn't notice the change.
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What are the factors affecting Demand and supply of goods?
price is the main factor which affect demand and supply and other factors which affect demand and supply are change in income weather change living standard of people alternative things superior to inferior
What is the essence of research?
The essence of research is to provide answers to problems that affects the living standard of human and find solution to improve in economic, technology, education and political standard life to a better state
How Inadequate social welfare assistance affects people because of poverty?
Inadequate social welfare assistance affects people who are impoverished by leaving them in poverty and not providing them further economic aid to raise their standard of living.
Why increase in national income affect increase in standard of living?
An increase in national income affects the increase in the standard of living because an increase in income increases the standard of living. When the national income is low, people are poorer.
What does the standard of living tell us about a country?
i think that a trade barrier is one thing that affects the country's standard of living. They are quota, embargo, regulation/standard, susbsidy, and tariff. They make the living standar dlower or higher depending on what happens with the trade. thats all i know but i dont know how much of it is right.
What are the factors affecting Demand and supply of goods?
price is the main factor which affect demand and supply and other factors which affect demand and supply are change in income weather change living standard of people alternative things superior to inferior
What is the essence of research?
The essence of research is to provide answers to problems that affects the living standard of human and find solution to improve in economic, technology, education and political standard life to a better state
How Inadequate social welfare assistance affects people because of poverty?
Inadequate social welfare assistance affects people who are impoverished by leaving them in poverty and not providing them further economic aid to raise their standard of living.
What is needed for living muscle to contract?
A living muscle needs oxygen in the blood and muscle elasticity to contract and move.
Why increase in national income affect increase in standard of living?
An increase in national income affects the increase in the standard of living because an increase in income increases the standard of living. When the national income is low, people are poorer.
How is a person's standard of living measured?
standard of living & reputation
What is Canada's standard of living?
The standard of living in Canada is moderate
What does the standard of living tell us about a country?
i think that a trade barrier is one thing that affects the country's standard of living. They are quota, embargo, regulation/standard, susbsidy, and tariff. They make the living standar dlower or higher depending on what happens with the trade. thats all i know but i dont know how much of it is right.
What is a sentence for the standard of living?
The standard of living can happen in Mexico City.
How do computers improve the standard of living?
Computer's are the new standard living
What is western Europe Standard of Living?
has a high standard of living.
How does population growth affect the standard of living?
The standard of living increases with the density of the population. A higher standard of living comes from an efficient division of labor and increased trade. When each member of a society is allowed to do what they can do with the greatest competitive advantage and freely trade the results of their labor and other resources with others who do the same it results in the highest possible standard of living. A larger population provides for a more efficient use of resources, including labor, by increasing the opportunity of trading what one does best for that produced by another. Examples of high population density with a lower standard of living, when found, can be explained by restrictions placed on the trade or interactions of the people.
