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Shoe factory has an elasticity of supply of .5 as the price of shoes rises from 50 to 75. If the factory produced 100000 shoes at a market price of 50 how many will be produced at the new price?
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A shoe factory has an elasticity of supply of .5 as the price of shoes rises from 50 to 75. If the factory produced 100000 shoes at a market price of 50 how many will be produced at the new price?
125,000
How does elasticity effect the tax incidence?
Tax incidence (the distribution of the tax burden among the buyers and sellers in a market) depends on the elasticity of demand and supply because elasticity measures the buyer and seller's willingness to leave the market when the prices of goods change. The more elastic demand/supply is, the more buyers/sellers will leave the market when the prices rise.Therefore, the tax burden falls more on the side of the market with the smaller elasticity, because a small elasticity means that more buyers/sellers remain in the market when the prices rise due to their being fewer available alternatives.
Why is elasticity important?
Because it shows how the market reacts to the change in price. therefore, companies would have to look at elasticity before they change their price. Governments also look at elasticity when changing tax rate to get the highest tax revenue possible.
How do you calculate elasticity in economics?
In economics, elasticity is the ratio of the change in one variable with respect to change in another variable, such as the responsiveness of the price of a commodity to changes in market demand or visa-versa. In terms of elasticity, a market or good can be described as elastic or inelastic as a means of describing its responsiveness to the change in another quantity. In economics, the definition of elasticity is based on the mathematical notion of point elasticity[citation needed]. For example, it applies to price elasticity of demand and price elasticity of supply, in which case the functions of the interest are Qd(P) and Qs(P). When working with graphs, it is common to put Quantity on x-axis and Price on y-axis, thus the function of the interest is x(y) rather than commonly used in mathematics y(x).
Importance of elasticity of demand and supply?
exploitation of monopoly power in market-the extent to which a firm or firm with monopoly power can raise price in market to extract consumer surplus and it into extraprofit
A shoe factory has an elasticity of supply of .5 as the price of shoes rises from 50 to 75. If the factory produced 100000 shoes at a market price of 50 how many will be produced at the new price?
125,000
How does elasticity effect the tax incidence?
Tax incidence (the distribution of the tax burden among the buyers and sellers in a market) depends on the elasticity of demand and supply because elasticity measures the buyer and seller's willingness to leave the market when the prices of goods change. The more elastic demand/supply is, the more buyers/sellers will leave the market when the prices rise.Therefore, the tax burden falls more on the side of the market with the smaller elasticity, because a small elasticity means that more buyers/sellers remain in the market when the prices rise due to their being fewer available alternatives.
When studying how some event or policy affects a market elasticity provides information on the?
maginitude of the effect on the market.
What did the new American middle classs create?
A market for mass-produced goods
Why is elasticity important?
Because it shows how the market reacts to the change in price. therefore, companies would have to look at elasticity before they change their price. Governments also look at elasticity when changing tax rate to get the highest tax revenue possible.
What is the market cap for The Cheesecake Factory Incorporated CAKE?
As of July 2014, the market cap for The Cheesecake Factory Incorporated (CAKE) is $2,168,133,634.08.
How many bugatti veyrons were produced and where can you buy one?
As all of the vehicles have now been produced, you cannot factory order a Veyron anymore. Best option for potential buyers is to get in contact with a vehicle sourcing expert who can find one on the used market.
Why is a garment factory an industrial market?
A garment factory is an industrial market because the garments are sold from one business to another. Raw materials are used at a garment factory to produce an end product.
What is the market cap for Fox Factory Holding Corp FOXF?
As of July 2014, the market cap for Fox Factory Holding Corp. (FOXF) is $576,994,181.24.
What did the new american middle class create?
A market for mass-produced goods
How do different societies decide what will be produced by whom will it be produced and for whom will it be produced?
In a free market economy, you the owner gets to chose who it is produced by, how it is produced and what is prdouced. In a command economy, the government chooses how it is produced, who it is produced by and what is produced. A mixed economy is mixed with command and free market.
At a price of 62.00 people are buying all of the microwave ovens produced at the MZ factory In this case 62.00 is called the price?
A. shortage marketB. steady marketC. fixed marketD. market clearing
