consumers have more time to adjust to a change in the price of good x than they have time to adjust to a change in the price of good y
No. It's more elastic in the long run than the short run.
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
Elasticity of demand is the responsiveness of quantity demanded of a good or service to changes in the price. Elastic demand means that for a change in price, the change in quantity demanded is more than proportionate. So the cheaper the price gets (say 1 unit), the quantity demanded will increase improportionately (say 2 units).
Yes, it certsinly does. The demand curve will be more elastic if there is a bandwagon effect than if the demand is based only on the functional attributes of the commodity. "BANDWAGON, SNOB, AND VEBLEN EFFECTS IN THE THEORY OF CONSUMERS' DEMAND" (Leibenstein, 1950)
YES
the market demand for the product. undefined. more inelastic than the market demand for the product. more elastic than the market demand for the product
No. It's more elastic in the long run than the short run.
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
Elasticity of demand is the responsiveness of quantity demanded of a good or service to changes in the price. Elastic demand means that for a change in price, the change in quantity demanded is more than proportionate. So the cheaper the price gets (say 1 unit), the quantity demanded will increase improportionately (say 2 units).
Yes, it certsinly does. The demand curve will be more elastic if there is a bandwagon effect than if the demand is based only on the functional attributes of the commodity. "BANDWAGON, SNOB, AND VEBLEN EFFECTS IN THE THEORY OF CONSUMERS' DEMAND" (Leibenstein, 1950)
YES
A product that is "not elastic" is considered "inelelastic." More precisely, we say that DEMAND for the product is elastic or inelastic (a good example of an"elastic product" is a rubber band, but that is to say nothing of its demand.Inelastic goods tend to fall into a few categories. They may be goods which have few close substitutes. This means that broadly defined goods tend to have less elastic demand than narrowly defined goods. For example, "vegetables" have less elastic demand than "broccoli," because if the price of broccoli goes up, we can easily switch to cauliflower or asparagus. Likewise, "vegetables" have more elastic demand than "food." When vegetables are more costly, we can stock up on grains or fruits (but probably won't switch to more meats, since they tend to be more expensive already). If the price of food goes up, we will simply pay it if we can. Thus, "food" is a relatively inelastic good.Another category of goods with inelastic demand is goods whose cost represents a small portion of our budgets. Salt is a great example. If the cost of salt doubles from $1 to $2, we are unlikely to cut our consumption in half. We may not even notice.
For any given change in the price(rise or fall), where demand is elastic there is a more than proportionate change in quantity demanded. When the price elasticity of demand for a good is elastic (|Ed| > 1), the percentage change in quantity demanded is greater than that in price. Hence, when the price is raised, the total revenue of producers falls, and vice versa.
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
Elasticity is the percentage change in one variable resulting from a percentage change in another variable. Thus, the price elasticity of demand is the percentage change in quantity demanded of a good resulting from a percent change in its price. Elastic demand means that the percentage change in quantity demanded of the good is greater than the percentage increase in price. This means that the demand for a good is very sensitive relative to price. Therefore, if the price increases by one dollar the quantity demanded for that good will decrease by a lot and if the price decreases by one dollar the quantity demanded for that good will increase by a lot. The determinants of price elasticity of demand are: substitutes of the good, percentage of income the good's price, and the need of the good. Substitutes are other goods that have the same or similar function to the particular good; if there are many substitutes then the price will be elastic in which the primary good becomes too expensive consumers will switch their demand to a close substitute, and if there are not many substitutes the price will be inelastic in which the primary good becomes very expensive consumers will have to buy that good no matter what. If the price of the good is a large percent of the consumer's income the elasticity of demand will be high, since the consumer will not want to spend the majority of their income on one good. If the good is a necessity, for example food, then people will have to buy it no matter the price therefore it will be very inelastic. If the good is a luxury good like a yacht then the demand elasticity will be very elastic.
These factors mean that quantity will increase at a more than proportionate amount to price.
Demand for a good can be elastic at a low price but inelastic at a high price. YouRE VERY WULCOM novanet ANSWER =)