0
What else can I help you with?
What is a true statementregarding the price elasticity of demand?
Price elasticity of demand is positively correlated with the existence of substitute goods.
Factors affecting income elasticity of demand?
The income factor affecting income elasticity of demand is weather or not goods are necessities of luxury.
Determinants of own price elasticity of demand?
1. Number of Substitute Products - the greater the number of substitute products, the greater is its own price elasticity of demand. 2. Price of Product Relative to consumers income - the greater the price of product relative to consumers income the greater is it Price Elasticity. 3. Nature of Goods - whether it is luxury good or necessity goods. 4. Passage of Time - the longer the time lapsed the greater Price Elasticity. Hope this answer helps... :)
What is the ranking of the following products in order of elasticity of demand, from the least elastic to the most elastic?
The ranking of the products in order of elasticity of demand, from the least elastic to the most elastic, is as follows: necessity goods, luxury goods, and then substitute goods.
Why is determining demand elasticity important in economics?
What are the determined factors of price elasticity of demand
What is a true statementregarding the price elasticity of demand?
Price elasticity of demand is positively correlated with the existence of substitute goods.
Factors affecting income elasticity of demand?
The income factor affecting income elasticity of demand is weather or not goods are necessities of luxury.
Determinants of own price elasticity of demand?
1. Number of Substitute Products - the greater the number of substitute products, the greater is its own price elasticity of demand. 2. Price of Product Relative to consumers income - the greater the price of product relative to consumers income the greater is it Price Elasticity. 3. Nature of Goods - whether it is luxury good or necessity goods. 4. Passage of Time - the longer the time lapsed the greater Price Elasticity. Hope this answer helps... :)
What is the ranking of the following products in order of elasticity of demand, from the least elastic to the most elastic?
The ranking of the products in order of elasticity of demand, from the least elastic to the most elastic, is as follows: necessity goods, luxury goods, and then substitute goods.
The price elasticity of demand is the ratio of the?
Change in the demand for a goods and the change in its price. The ratio is negative but the negative sign is usually dropped.
Why is determining demand elasticity important in economics?
What are the determined factors of price elasticity of demand
Is the income elasticity of demand different for normal and inferior goods?
Yes, the income elasticity of demand is different for normal and inferior goods. Normal goods have a positive income elasticity of demand, meaning that as income increases, the demand for these goods also increases. In contrast, inferior goods have a negative income elasticity of demand, indicating that as income rises, the demand for these goods decreases.
Total Outlay Method for measurement of Elasticity of Demand?
According to this method the degree of elasticity of demand is measured by comparing firm's revenue from consumer's total outlay on the goods before the change in the price with after the change in the price.
If the value of the cross price elasticity of demand between two goods is approximately zero they are considered?
unrelated
What is elasticity of demand from an economics point of view?
The elasticity of demand from an economic point of view is used to show the responsiveness of the amount of a goods or services to a change of price. It gives a percentage of change in quality.
What is the relationship between income elasticity of demand and inferior goods?
The income elasticity of demand measures how sensitive the quantity demanded of a good is to changes in income. For inferior goods, the income elasticity of demand is negative, meaning that as income increases, the demand for inferior goods decreases.
What is the meaning of elastricity demand?
The term elasticity indicates responsiveness of one variable to change in other variable.For e.g.,when variable x responds to change in variable y,variable x is said to be elastic.Likewise,demand is said to be elastic if it responds to change in price. There are three main determinants of demand,they are price of the commodity,income of the consumers,and price of the related goods.Thus,elasticity of demand means responsiveness of demand due to change in price of the commodity,income of the consumer,and price of the related gooods. Or you can say that,it measures the degree of change in the quantity demanded of the commodity in response to a given change in price of the commodity,change in consumer's income or price of the related goods. Accordingly,there are three main type of elasticities of demand: 1. Price elasticity of demand: Price elasticity of demand measures the responsiveness of demand for a commodity due to change in it's price. 2. Income elasticity of demand: It indicates the responsiveness of demand to change in consumer's income.It is the degree of change of demand to a change in consumer's income. 3. Cross elasticity of demand: It refers to change in quantity demanded of commodity x as a result of changes in the price of commodity y. Here, x and y can be either substitute goods or complementary goods).
