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If a product has a inelastic demand a price increase will cause?
Wiki User
∙ 6y ago
I assume you mean that the demand is inelastic? If so, then the consumer will buy the same amount and pay the higher price. The usual example of this would be insulin (assuming you need a fixed amount to live and there are no alternatives)
Wiki User
∙ 6y ago
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When An excess demand for a product will cause the price to?
Increase
When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
What is the importance of elasticity of demand and supply?
Elasticity of demand to firms are important because they represent the nature of the goods they are dealing in. For example if a firm produces goods with inelastic demand they will be able to earn high profits because even if they increase the price of the goods, since the change in demand will be less than the change in price. Also if there is a tax they will share less of the burden. This means they can keep prices high and not have to worry about a lot of things. However, if a firm were to produce goods with elastic demand, then they will have to make sure the price of the good remains low and if there is a tax they will be the ones who share the majority of the burden.
A price decrease will cause total revenue to fall if?
demand is inelastic
Which would cause an increase in the demand for production A?
A decrease in the price of a complementary product B.
When An excess demand for a product will cause the price to?
Increase
When can a commodity be completely inelastic?
Never. According to every economics textbook in existence, an "elastic" commodity is one where a one-percent price delta causes at least a one-percent demand delta. An "inelastic" commodity is one where a one-percent price delta causes less than a one-percent demand delta, and a "completely inelastic" commodity is one where demand doesn't change regardless of price changes. Here's reality: there is not one product in this world that you can increase the price of and not cause demand to fall.
When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
What is the importance of elasticity of demand and supply?
Elasticity of demand to firms are important because they represent the nature of the goods they are dealing in. For example if a firm produces goods with inelastic demand they will be able to earn high profits because even if they increase the price of the goods, since the change in demand will be less than the change in price. Also if there is a tax they will share less of the burden. This means they can keep prices high and not have to worry about a lot of things. However, if a firm were to produce goods with elastic demand, then they will have to make sure the price of the good remains low and if there is a tax they will be the ones who share the majority of the burden.
A price decrease will cause total revenue to fall if?
demand is inelastic
Which would cause an increase in the demand for production A?
A decrease in the price of a complementary product B.
What is the difference between increase in demand and an increase in quantity demand?
Increase in demand::It imply rightwaed shift of demand curve.Therefore change in factors other than price.1. increase in taste increase in demand curve2. increase in popoulation increase in demand curve3. increase in income increase demand if normal good4. fall in income increase demand if an inferior good5. increase in price of substitute (pepsi) increase demand for good(coke)6. fall in price of complement (beer) increase demand for good7. if we expect the price of the product to increase in the future , our demand today will increase.Increse in quantity demanded::Movement up the demand curve.Therefore change in price-------- increase in price cause a decrese in quantity demanded,decrese in price cause an increase in quantity demanded .
How may high demand and limited supply of products cause inflation?
because when the demand increase the price increase to.and customers have no choice since they used to consume the same product for too long.
The difference between a elastic and inelastic demand?
Elastic demand changes according to some other factor. The demand for holdiay trees is elastic throughout the year because there is only damand during the winter season. Inelastic demand is constant. As you might have guessed, the demand for gasoline is inelastic because most families need a constant supply. Even during the so-called summer driving season, the uptick in demand is going to remain the same, unless prices cause what is called "demand destruction." This is what happened during 2009.
An increase in demand will cause the equilibrium price and quantity to rise?
An increase in demand will cause the equilibrium price to fall and equilibrium quantity to rise.
How would lack of product affect supply and demand?
A lack of product (a.k.a. a shortage) would primarily cause an increase in the price of the good or service. An increased price means more supply, but it also means less demand.
Which is not a cause for the increase in leisure activities?
The current economic demand is not a cause for the increase in the leisure activities.
