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What factors determine whether a product has elastic, inelastic, or unit-elastic demand in the market?
The factors that determine whether a product has elastic, inelastic, or unit-elastic demand in the market include the availability of substitutes, the necessity of the product, the proportion of income spent on the product, and the time frame considered.
Is monopoly demand always elastic?
No, monopoly demand is not always elastic. In a monopoly, the demand curve is typically downward-sloping, meaning that the monopolist can influence the price of its product. The elasticity of demand depends on factors such as the availability of substitutes and the necessity of the product; if substitutes are few and the product is a necessity, demand may be inelastic. Conversely, if there are many substitutes, demand can be more elastic.
The demand for a product is likely to be more elastic when?
A product is likely to be more elastic the more dispensable or unnecessary it is to the consumer. For instance, if the price increases and the product is elastic, the consumer will not demand as much because they can do without it.
What factors determine the demand for perfectly elastic goods in the market?
The demand for perfectly elastic goods in the market is determined by factors such as the availability of close substitutes, consumer preferences, and the price of the good. When there are many substitutes available, consumers are more likely to switch to a different product if the price changes, leading to a perfectly elastic demand curve.
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.
What factors determine whether a product has elastic, inelastic, or unit-elastic demand in the market?
The factors that determine whether a product has elastic, inelastic, or unit-elastic demand in the market include the availability of substitutes, the necessity of the product, the proportion of income spent on the product, and the time frame considered.
The demand for a product is likely to be more elastic when?
A product is likely to be more elastic the more dispensable or unnecessary it is to the consumer. For instance, if the price increases and the product is elastic, the consumer will not demand as much because they can do without it.
What factors determine the demand for perfectly elastic goods in the market?
The demand for perfectly elastic goods in the market is determined by factors such as the availability of close substitutes, consumer preferences, and the price of the good. When there are many substitutes available, consumers are more likely to switch to a different product if the price changes, leading to a perfectly elastic demand curve.
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.
What factors influence the demand for goods with elastic demand?
Factors that influence the demand for goods with elastic demand include the availability of substitutes, the necessity of the good, and the proportion of income spent on the good.
When a product is in demand what happens to the demand curve?
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
What does it mean when a product is elastic and how does it impact its demand and pricing?
When a product is elastic, it means that changes in its price lead to significant changes in demand. If a product is elastic, a small increase in price will result in a large decrease in demand, and vice versa. This can impact pricing because businesses may need to adjust prices carefully to maintain sales volume and revenue.
What product is more likely to have the MOST elastic demand curve?
Household electricity
What factors influence the pricing strategy for products with elastic demand?
Factors that influence the pricing strategy for products with elastic demand include the availability of substitute products, consumer income levels, and the overall market competition.
If a demand for a product is elastic the value of the price elasticity coefficient is?
greater than one
What factors affect elastic of demand?
There are plenty of factors affecting elasticity of demand including climate of the area. Other factors that effect elasticity of demand include supply and group of people buying.
What is cross elastic?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
