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Is the degree of responsive with which quantity demanded changes due to changes in the price of a product?
Wiki User
∙ 14y ago
Yes. Imagine you are in the market to buy a sports car. A $100 increase in price is not likely to affect the quantity you will demand. However, if you are in the market for bananas a $100 increase in price will definitely affect the quantity you will demand.
Wiki User
∙ 14y ago
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If price changes have little effect on the quantity of a product demanded the product is said to have?
inelastic demand
The quantity of a product that will be purchased at a given price is the?
quantity demanded
If the prices have a little effect on the quantity of a product demanded the product is said to have?
inelastic demand
When the price of a product is increased the quantity demanded decreases demand for this product is?
when the price of product increased the porchasing powre of consumer is foll so he will decreases his quantity demand for that product.
What are the different types of demand in economics?
what is demand curve is a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis
If price changes have little effect on the quantity of a product demanded the product is said to have?
inelastic demand
The quantity of a product that will be purchased at a given price is the?
quantity demanded
When is there a shortage in a market for a product?
Quantity demanded is less than quantity supplied.
If the prices have a little effect on the quantity of a product demanded the product is said to have?
inelastic demand
When the price of a product is increased the quantity demanded decreases demand for this product is?
when the price of product increased the porchasing powre of consumer is foll so he will decreases his quantity demand for that product.
What are the different types of demand in economics?
what is demand curve is a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis
What is the importance of elasticity concept to the government?
In Economics, Elastiticy measures the responsiveness of quantity demanded to changes in price. This means if the price changes, how strong or weak is the changes in quantity. However there are many other elasticities that we may not study in Economics. For example, there is also the elasticity to measure how sensitive are the quantity demanded to changes in advertisement. Hence, what elasticity tells us, is how the change in one variable have an impact on another variable. This is important as it helps the organization decide on the best course of action. For example, lets say one business firm decided to decrease the price, hoping to increase the quantity demanded of its product. If the consumers are not elastic, meaning not responsive to the changes in price, there will be no changes or small changes only to the quantity demanded. This means the organization cannot achieve it's goal of increased demand. This means that the organization need to have a change in its strategy, to increase the quantity demanded, either by increasing promotion activities or other ways. Another example, if the government tries to reduce the quantity demanded of a certain good, for example gambling or prostitution, either by taxation, we need to see if the industry is responsive to the tax. If it's resposive, then the government is successful, if not other measures is necessary. Hence, elasticity helps the company and the government to understand if what it's doing produces result or not. This is important, as in Economics, resources are scarce, it's unwise to use resources and the final outcome is not achieved. As a teacher, I introduce the elasticity concept to them, by saying that some students are very responsive to punishements, while others are not responsive to punishments at all. Whether a students is responsive or not, can depend on other factors as well. Hope this helps. (cheong@bgymail.gd.cn)
What is market clearing price?
Market clearing price is the price at which the quantity demanded of a product equals the quantity supplied.
When there is a change in the quantity demanded what happens to the demand curve?
Decrease in quantity demanded usually results from an increase in price and vice versa. When the price of a product increases, the demand curve itself is not affected. However, the quantity demanded decreases to a higher point along the demand curve.
What is quantity demanded?
Quantity demanded (QS) is the amount of a product or service wanted by the market. QS is corresponded to quantity supplied (QS) that regards how much of the what is wanted is actually offered. When QD equals QS the market is said to be at equilibrium.
Distinguish between change in demand and change in quantity demanded with the aid of a diagram?
A change(shift) in demand refers to a change in the amount of a product or service demamded in regards to changes in expectations,income,demographics,substitutes and expectations and will cause a "shift" in the demand curve. A change in quantity demanded refers to a change of the inputs(resources required to produce that good or service) required to produce the goods or services being demanded. If the price of producing the good or service changes then the quantity demamded will "change" causing a movement along the demand curve.
Why do people buy more of something at lower prices and less at higher prices?
the law of demand. an inverse relationship between the quantity demanded and the price of the product (the lower the price the higher the quantity demanded).
