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What is perfect elastic of demand?
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
Distinguish between elastic and inelastic demand?
An example of perfectly inelastic demand would be a life-saving drug that people will pay any price to obtain. Elastic demand is the opposite of this.
What is the different between Perfectly inelastic supply and inelastic supply?
Perfectly elastic supply curve: The supply of a commodity will be perfectly elastic when its price remain constant but supply changes to any extent.The supply curve will be parallel to x axis.The numerical value of elasticity of supply will be infinity. Perfectly inelastic supply curve: The supply of a commodity will be perfectly inelastic when its supply remain constant but price changes to any extent.The supply curve will be parallel to y axis.The numerical value of elasticity of supply will be zero.
What is the difference elastic and inelastic demand?
Difference is that inelastic demand people need to have that item no matter what the cost. An example would be insulin for diabetic people. Elastic demand is when someone doesn't need to buy a product if the price changes. Example is ramen noodles. If they cost $100 per packet people wouldn't buy them.
Are newspapers elastic or inelastic?
Probably the easiest way to think about the question of elasticity is "If the price of my product rises, will lots of people stop buying it?" If the answer is "Yes", then the good is elastic. If the answer is "No", then the good is inelastic.As a result, the question of whether newspapers are elastic or inelastic depends on the community. If you have a community where there are no alternative news sources, newspapers are likely going to be inelastic (because people generally want to know the news). If you have a community with access to substitute news sources, such as television journalism or internet journalism, newspapers are likely to be more elastic. Of course, if you have a community that does not care about the news at all and would not consume news, newspapers would be perfectly elastic since nobody would buy one at any cost.
What is perfect elastic of demand?
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
Distinguish between elastic and inelastic demand?
An example of perfectly inelastic demand would be a life-saving drug that people will pay any price to obtain. Elastic demand is the opposite of this.
What is the different between Perfectly inelastic supply and inelastic supply?
Perfectly elastic supply curve: The supply of a commodity will be perfectly elastic when its price remain constant but supply changes to any extent.The supply curve will be parallel to x axis.The numerical value of elasticity of supply will be infinity. Perfectly inelastic supply curve: The supply of a commodity will be perfectly inelastic when its supply remain constant but price changes to any extent.The supply curve will be parallel to y axis.The numerical value of elasticity of supply will be zero.
What is the difference elastic and inelastic demand?
Difference is that inelastic demand people need to have that item no matter what the cost. An example would be insulin for diabetic people. Elastic demand is when someone doesn't need to buy a product if the price changes. Example is ramen noodles. If they cost $100 per packet people wouldn't buy them.
Are newspapers elastic or inelastic?
Probably the easiest way to think about the question of elasticity is "If the price of my product rises, will lots of people stop buying it?" If the answer is "Yes", then the good is elastic. If the answer is "No", then the good is inelastic.As a result, the question of whether newspapers are elastic or inelastic depends on the community. If you have a community where there are no alternative news sources, newspapers are likely going to be inelastic (because people generally want to know the news). If you have a community with access to substitute news sources, such as television journalism or internet journalism, newspapers are likely to be more elastic. Of course, if you have a community that does not care about the news at all and would not consume news, newspapers would be perfectly elastic since nobody would buy one at any cost.
What is meant by price inelastic?
Price inelastic means that the supply or demand of a product or service is unaffected by any changes in the price.
What does elasticity of demand mean?
"Elasticity of demand" is the economic term for how much of something people want. If demand is inelastic, people will buy the same amount at any price (think insulin--a diabetic needs it and so will buy it at any price.). If demand is elastic, the price greatly affects how much people will buy (concert tickets for a B-rate band: the higher the price, the less people will come). This is very generalized: the topic is very complex and confusing when explained in economic terms. Recently the demand for gas, which used to be inelastic, has become elastic. The price has raised too high for people to keep buying what they usually did, and so travel plans have been curtailed due to this and less gas has been puchased. Even more recently, gas prices have lowered again, but demand cannot yet be said to be inelastic again. Altogether, inelastic demand does not affect supply, while elastic demand does.
What is the Classification of the elasticity of demand?
ELASTIC DEMAND - a change in price, results in a greater than proportional change in the quantity demanded ED>1.INELASTIC DEMAND - a change in price results in a less than proportional change ED
Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
A perfectly inelastic demand curve will be completely horizontal and means that consumers would any price for a particular good, which is almost impossible. The closer to being horizontal a demand curve is, the more inelastic the demand.
Is the concept of price elasticity anyway useful to an aspiring entrepreneur when deciding on the goods to produce?
Yes, in fact, the price elasticity of a good is very useful when deciding on which goods to produce. The more inelastic the good, the more power the producer has in setting the price level of that good. Take, for example, the pharmaceutical industry. Medicine is an inelastic good because no matter what the price is, people will still need the medicine that they purchase. So if a pharmaceutical company has the only product of its kind on the market they have an almost monopolistic control over that particular market and they are able to set almost any price level they wish. In this case, these producers are price setters. If the price of a good is elastic, like milk for example, producers have less control over the market. If the price of milk were to increase, then consumers would substitute away from milk to some other commodity. Therefore, producers in the milk industries are price takers, because they take whatever price is already on the market, and they sell their products for that price. So, for an aspiring entrepreneur, knowing what kind of product is elastic and what kind of product is inelastic is very useful. If they really want to make a good deal of money, it would be wise to choose a product that is relatively inelastic. This was a change in price will not greatly affect the quantity of their good that is sold.
What good has a perfectly elastic market?
No good is perfectly elastic: if it were, any raise in price would cause exactly zero units of the good to be demanded, and any drop in price would cause infinite units of the good to be demanded, which is not possible. Some goods are very elastic, however, like goods with close substitutes (Pepsi and Coke are good examples).
Is demand of education elastic or inelastic?
The demand for education is generally considered to be inelastic. This is because education is seen as a necessity and essential for personal and career development, so changes in price have limited impact on the overall demand for education.
