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If a good increase in price and demand drops is the demand inelastic or elastic?
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Sentence with supply and demand?
Her supply of tight sweaters increases the demand for her as a date on the weekend.
Examples of price elasticity of supply?
some examples of elastic and inelastic supply are:elastic:Gasoline is a really good example. When gasoline prices dip, everyone drives in to fill up their tank. In this case, when price drops slightly, quantity purchased jumps drastically. Although people "need" gasoline, people will tend to treat it as an elastic product.inelastic:Products like Tobacco or Insulin. Although prices may increase for these products, customers will not hesitate to engage in a transaction. This is especially true with products like insulin which is literally a matter of life and death. The only reason why production companies like this don't increase prices of insulin is because of fear of government regulation.Note: the above answers are wrong. They are about elasticity of DEMAND, not SUPPLY like the question calls for. Goods with an elastic supply are those that require little capital, no hard-to-find resources, and no skilled labor force. The more of these items a good requires, the less elastic its supply will be.
What is an example of a product which has a perfectly elastic demand?
One example is money. When one charges any value more than the face value of a piece of currency, the revenue drops to zero, because the value of the money given up by the consumer is larger than the value obtained. This means that no one would by your product, thus bringing revenue to zero. --> money is the example for highly elastic demand, isn't it?
What is the difference between demand and quantity demanded?
demand = how much people want it quantity (supply) = how much you have/can sell When the demand drops, the supply increases, and when the supply increases, the demand drops, but it will turn around again, and when the supply is low, the demand increases, and when the demand increases, and the supply gets lower.
Why does demand fall?
Demand drops when the price of the demanded good rise.But also demand of a certain good may drop when the price of substitute fall
Demand for ipod is elastic or inelastic?
Ipods are elastic. When the price drops people buy more, when it rises people buy less.
What is elasticity of demands?
How much demand of a product goes up or down depending on the price. Elastic demand changes greatly as price changes - for normal goods, as the price goes up, demand drops. Demand for things like non-staple food - like cookies - is elastic. If cookies cost 50 cents a box, there might be huge demand for them. But if that price goes to $10 a box, if the price were elastic, the demand would be much lower. For an inelastic demand curve, people's demand changes little as prices change. THese are goods for which there are few substitutes. Things like gasoline have relatively inelastic demand curves - people will slow down their use/demand of gasoline a bit as prices go up, but a certain level of gasoline consumption is going to exist regardless of price. People are simply going to pay what they have to to get it.
Sentence with supply and demand?
Her supply of tight sweaters increases the demand for her as a date on the weekend.
What happens when the price of a good drops?
Supply & Demand, EconomicsEconomic studies tell us that when the price of a good drops, demand will rise. Furthermore, when the price of a good rises, demand will go down.
Examples of price elasticity of supply?
some examples of elastic and inelastic supply are:elastic:Gasoline is a really good example. When gasoline prices dip, everyone drives in to fill up their tank. In this case, when price drops slightly, quantity purchased jumps drastically. Although people "need" gasoline, people will tend to treat it as an elastic product.inelastic:Products like Tobacco or Insulin. Although prices may increase for these products, customers will not hesitate to engage in a transaction. This is especially true with products like insulin which is literally a matter of life and death. The only reason why production companies like this don't increase prices of insulin is because of fear of government regulation.Note: the above answers are wrong. They are about elasticity of DEMAND, not SUPPLY like the question calls for. Goods with an elastic supply are those that require little capital, no hard-to-find resources, and no skilled labor force. The more of these items a good requires, the less elastic its supply will be.
How do the changes of demand affect the price?
Higher demand, the higher the price goes. Remove the demand for something and then the price drops.
What is an example of a product which has a perfectly elastic demand?
One example is money. When one charges any value more than the face value of a piece of currency, the revenue drops to zero, because the value of the money given up by the consumer is larger than the value obtained. This means that no one would by your product, thus bringing revenue to zero. --> money is the example for highly elastic demand, isn't it?
What is the difference between demand and quantity demanded?
demand = how much people want it quantity (supply) = how much you have/can sell When the demand drops, the supply increases, and when the supply increases, the demand drops, but it will turn around again, and when the supply is low, the demand increases, and when the demand increases, and the supply gets lower.
Why does demand fall?
Demand drops when the price of the demanded good rise.But also demand of a certain good may drop when the price of substitute fall
What do Afa's Drops do in Fire Emblem?
Afa's Drops increase the character's growth rate by 5, pernamently.
Price Elasticity of Demand?
When the price of something you're used to paying for increases do you buy less of it? Or if the price suddenly drops do you buy more of it? Economists call this effect the price elasticity of demand. They use a formula to determine just how price elastic the demand for certain goods are. What about that premium coffee you buy on your way to work? What if the price suddenly jumped from $3.00 to $4.50? That's an increase of 50%. Well, you might rightly consider buying your coffee from the drive-up at the fast food place or purchasing your own coffee at the grocery store and brewing it in a travel mug for your commute. The demand for such "luxury" coffee can be considered price elastic. On the other hand, think about this in terms of gasoline. If you're like most Americans you drive a car in order to get to work and run errands. When the price of gas goes up do you stop buying as much gas? Maybe a little bit, but most likely, you continue driving the same number of miles you drove before because you have to. Consequently, you end up purchasing the same number of gallons of gasoline you did last week, even if the price has jumped by 50%. That's because fuel is traditionally price inelastic. The changes in the price do not alter demand by very much in the short run. Factors that affect the price elasticity of demand are the availability of alternative goods or services, levels of discretionary income, and timeframe. As we saw in the example of the coffee, where an alternative source offers a substitute for the "luxury" good demand is price elastic. However, with gasoline there are no good short-term alternatives, so the demand stays relatively flat while prices fluctuate. Your level of discretionary income is also an important factor. If your income level rises or drops, you may find your own reaction to certain goods and services moving in concert. Things you were unwilling to give up before become much easier to do without when your income falls. Also, the timeframe plays an important role in price elasticity of demand. Imagine that gas prices rise, as in the example above, but instead of dropping back down again they stay elevated for years at a time. This would cause people to seriously reconsider their reliance on a personal automobile. We'd see people start to ride bicycles more, or an increase in carpooling, or greater acceptance of public transportation. While the demand for a good may be price inelastic in the short run, it may well become elastic in the long run.
What will happen when the price of goods drop?
Supply & Demand, EconomicsEconomic studies tell us that when the price of a good drops, demand will rise. Furthermore, when the price of a good rises, demand will go down.
