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What is Short run and long run price elasticity of demand?
is the long run elasticity of demand is ever smaller than the short run elasticity of demand.
Would you expect the price elasticity of demand for electricity for residential use in India to be higher or lower in the short run as compared with the long run?
Both.
Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run?
In the long run, manufacturers and producers can respond to consumer demand by analyzing trends that develop over time. Short-term, this is less practical because adjustments often cannot be made quickly enough to accommodate changes.
What is Short run AND long run demand?
why do not give answers
What are different types of demand distinctions?
1.producer's goods and consumer's goods 2.durable goods and non durable good 3.derived demand and autonomous demand 4.industry demand and company demand 5.short run demand and long run demand 6.short term demand fluctuations and long term trends 7.total market and market segments
What is Short run and long run price elasticity of demand?
is the long run elasticity of demand is ever smaller than the short run elasticity of demand.
Would you expect the price elasticity of demand for electricity for residential use in India to be higher or lower in the short run as compared with the long run?
Both.
Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run?
In the long run, manufacturers and producers can respond to consumer demand by analyzing trends that develop over time. Short-term, this is less practical because adjustments often cannot be made quickly enough to accommodate changes.
What are the main determinant of price elasticity of demand in the Caribbean?
The availability of substitutes Habit- Forming Goods 'Luxuries' and 'necessities' The proportion of income which is spent on the commodity The long run and short run.
Is the price elasticity of supply usually larger in the short run or in the long run?
long run is ever smaller than short run
What are some of the factors that affect the elasticity of demand for labor?
The elasticity of demand for labor is influenced by several factors, including the availability of substitute labor, the degree of labor's contribution to production, and the time frame considered. Industries that can easily substitute capital for labor tend to have more elastic demand. Additionally, if labor accounts for a significant portion of total production costs, demand may be more sensitive to wage changes. Lastly, in the short term, demand may be inelastic due to contractual obligations, but it can become more elastic over the long term as firms adjust their workforce.
What is Short run AND long run demand?
why do not give answers
What are different types of demand distinctions?
1.producer's goods and consumer's goods 2.durable goods and non durable good 3.derived demand and autonomous demand 4.industry demand and company demand 5.short run demand and long run demand 6.short term demand fluctuations and long term trends 7.total market and market segments
How can a product have both elastic and inelastic demand?
A product can exhibit both elastic and inelastic demand depending on various factors such as price range, consumer preferences, and availability of substitutes. For instance, a product may have inelastic demand at lower price levels, as consumers consider it a necessity, but become elastic at higher prices when alternatives become more attractive or budgets are strained. Additionally, the time frame can influence demand elasticity; short-term demand may be inelastic, while long-term demand can become more elastic as consumers adjust their behavior.
Is a firm's demand for labor curve is more elastic in the short run than in the long run?
No. It's more elastic in the long run than the short run.
How does demand tend to be more elastic in the short run than in the long run?
In the short run, consumers have fewer options to adjust their purchasing behavior, making demand more sensitive to price changes. In the long run, consumers have more time to find substitutes or adjust their budgets, making demand less elastic.
What are three applications of supply demand and elasticity?
Most economists agree on the application of supply, demand & elasticity. Here three examples of these factors in the world of economics: A. The demand for food is for the most part "inelastic" because food is inexpensive and a necessity. Concurrent with new technologies in agriculture, this has ironically has reduced total revenue paid to the farming sector; B. Oil as an example. In the 1970's OPEC reduced the supply of oil in order raise its price. Yes, in the short run, the demand for this product ( never a cheap one as agriculture above ) tended to be inelastic as consumers were pressed to find substitutes. As expected, the decrease of this essential commodity raised prices & profits for OPEC. Long term, however, more fuel efficient automobiles and other sources of energy such as increased gas & oil production caused the oil demand towards elasticity, inducing producers to search for more oil causing this commodity to become more elastic. Thus the short term run up in prices did not carry into the long run. Result: back to normalcy. C. Illegal drug market. The short term demand for additive drugs is relatively inelastic. Government policies & practices dove tail to enhance the climb in price for drugs. Yet consumption, based on addiction, remains level and revenue paid by users increases. This places pressure on users to increase their own revenues and perhaps causes crime rates to rise to fund their addictions. Studies however show that long term drug usage must level out. The price in this example reduces demand and we see elasticity. Law enforcement, price reduce demand which reduces total revenue, and this industry flattens out. The above examples enable the economist to analyze important events and policies that shape the economy.
