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If because a modest price increase has little or no effect the demand for the product is?
Wiki User
∙ 14y ago
If a modest price increase has little no no effect on the demand it means that the product is inelastic. Inelastic goods are those that people will need no matter what the price is, such as most medications, and food as a whole (not specific brands).
Elastic goods are defined as goods were the demand fluctuates as the price fluctuates. These are different brands of foods (If Dole starts to charge more for apple juice consumers will switch to Tropicana Orange Juice.)
Wiki User
∙ 14y ago
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If a price increase has little or no effect the demand for the product is?
When a price increase has little or no effect on the demand for a product, it is inelastic.
What is an increase in demand likely to lead to?
If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Explain the effect on the equilibrium price and quantity if increase in the price in product?
If the price increases it means there is not a lot of product avaible. This is seen when a company can not keep up with demand the tend to raise prices so that demand goes down. This is also seen in with the opposite effects, if a company has too much of a product then they lower prices to increase demand
What is the effect of an increase in consumer income on demand for a good?
They both will increase (or decrease).
If a price increase has little or no effect the demand for the product is?
When a price increase has little or no effect on the demand for a product, it is inelastic.
What is an increase in demand likely to lead to?
If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Explain the effect on the equilibrium price and quantity if increase in the price in product?
If the price increases it means there is not a lot of product avaible. This is seen when a company can not keep up with demand the tend to raise prices so that demand goes down. This is also seen in with the opposite effects, if a company has too much of a product then they lower prices to increase demand
What is the effect of an increase in consumer income on demand for a good?
They both will increase (or decrease).
There is Increase in price of salt explain its effect on its demand?
help me
If the prices have a little effect on the quantity of a product demanded the product is said to have?
inelastic demand
Because tax cuts will likely affect both aggregate demand and aggregate supply does it matter which is affected more?
Because a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.
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.
If price changes have little effect on the quantity of a product demanded the product is said to have?
inelastic demand
Which effect does scarcity have on the price of the product if the demand stays the same?
The scarcer the product, the higher the price.
How elasticity of demand effect managerial decisions?
Elasticity of demand measures how much demand for a product will change if the price of that product is changed. Something highly elastic will be greatly affected by price changes (something like a hotdog for example, if a vendor raises his price then demand will drop because people can go elsewhere-demand is elastic). So management must be aware of how consumers will react to price changes. Normally, lowering the price of a good will bring in more customers if the demand for that good is elastic. If it is inelastic, then a lower price will not increase demand much.
