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Describe three determinants of demand elasticity?
These three determinants are listed here: nature of commodity -the more perishable a good,lower will its elasticity of demand,middle income groups have highly elastic demand ,goods having alternative uses have elastic demand,for eg.milk
What are the differences between elastic, inelastic, and unit elastic demand, and how do they impact the pricing and sales of a product?
Elastic demand means that a small change in price leads to a large change in quantity demanded. Inelastic demand means that a change in price has little impact on quantity demanded. Unit elastic demand means that the percentage change in price is equal to the percentage change in quantity demanded. For pricing and sales, elastic demand typically leads to lower prices and higher sales volume, as consumers are more sensitive to price changes. Inelastic demand allows for higher prices with less impact on sales volume, as consumers are less sensitive to price changes. Unit elastic demand falls in between, with price changes having a proportional impact on sales volume.
Why would you expect firms that set price to do so in the elastic portion of their demand curve?
I'm having trouble finding a descent response
What is the responsible for inflation according to the demand-pull theory?
According demand-pull theory, what causes inflation is a strong demand and a lower supply. By having a greater demand, people pull prices up. Economists will often say that demand-pull inflation is a result of too many dollars chasing too few goods.
Define elastic demand?
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.
Describe three determinants of demand elasticity?
These three determinants are listed here: nature of commodity -the more perishable a good,lower will its elasticity of demand,middle income groups have highly elastic demand ,goods having alternative uses have elastic demand,for eg.milk
What are the benefits of having it support services?
As your company grows, their will be a higher demand for your services. Having an I.T. support service will help take the burden of having to satisfy everybody.
What are the differences between elastic, inelastic, and unit elastic demand, and how do they impact the pricing and sales of a product?
Elastic demand means that a small change in price leads to a large change in quantity demanded. Inelastic demand means that a change in price has little impact on quantity demanded. Unit elastic demand means that the percentage change in price is equal to the percentage change in quantity demanded. For pricing and sales, elastic demand typically leads to lower prices and higher sales volume, as consumers are more sensitive to price changes. Inelastic demand allows for higher prices with less impact on sales volume, as consumers are less sensitive to price changes. Unit elastic demand falls in between, with price changes having a proportional impact on sales volume.
Why would you expect firms that set price to do so in the elastic portion of their demand curve?
I'm having trouble finding a descent response
What is the responsible for inflation according to the demand-pull theory?
According demand-pull theory, what causes inflation is a strong demand and a lower supply. By having a greater demand, people pull prices up. Economists will often say that demand-pull inflation is a result of too many dollars chasing too few goods.
Define elastic demand?
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.
Which of these terms is the result of having too little of a product to meet the demand for it?
Scarcity is the result of having too little of a product to meet the demand for it.
What are the services rendered in a health care center?
Services rendered in a healthcare setting refer to things done for a patient by a doctor or nurse. Some examples of services rendered include the application of bandages, having x rays taken, and being given pain medication.
What are examples of having verbs?
Examples of having verbs include "has," "owns," "possesses," and "holds." These verbs show possession or control over something.
Price inelasticity of demand?
The elasticity of demand is related to the slope of the demand curve, but is not the same. The steeper the demand curve is the more the consumers "must" have the good. Lifesaving medicine, for example, has a very steep demand curve because producers can raise the price without appreciably decreasing the quantity demanded. Goods like this are inelastic. Goods with many alternates, like potato chips, are elastic. If the price is raised, consumers will purchase alternates instead, like pretzels.
When the price elasticity of a demand is large what happens?
Having a high price elasticity on a demand means that if there's a price change, the amount demanded will dramatically change. An example of a product with high elasticity is bananas. During the natural disaster in North Queensland, Australia, most of the banana crops were destroyed, and because of the supply going down, price went up. In response to this up-rise in price, demand for bananas dramatically decreased. Meaning it's a highly elastic product.
What are examples of economic stability?
Having a job!
