0
What happens to the total expenditures for a product with elastic demand when is price goes up?
Wiki User
∙ 7y ago
When the price falls and the demand is elastic ie. ed >1
the total expenditure increases according to the total outlay method.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
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.
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
Total expenditures are determined by what?
Dividing the change in demand for the product by its change in price. e=(change in demand)%/(change in price)%
What product is more likely to have the MOST elastic demand curve?
Household electricity
If a demand for a product is elastic the value of the price elasticity coefficient is?
greater than one
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
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.
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
Total expenditures are determined by what?
Dividing the change in demand for the product by its change in price. e=(change in demand)%/(change in price)%
What product is more likely to have the MOST elastic demand curve?
Household electricity
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.
If a demand for a product is elastic the value of the price elasticity coefficient is?
greater than one
When is a market penetration pricing policy appropriate a.if a product is new and different b.if demand is highly elastic c.if demand is inelastic d.if there is no possibility of economies of scale?
b. when demand is highly elastic. (The penetration strategy is used when an elite market does not exist and demand seems to be elastic over the entire demand curve.)
What is the difference elastic and inelastic demand?
Difference is that inelastic demand people need to have that item no matter what the cost. An example would be insulin for diabetic people. Elastic demand is when someone doesn't need to buy a product if the price changes. Example is ramen noodles. If they cost $100 per packet people wouldn't buy them.
What Distinction between price elastic and price inelastic?
Elasticity is "a measure of responsiveness that tells us how a dependent variable such as a quantity responds to a change in an independent variable such as price." Basically, that means that elastic product's demand is affected by price and an inelastic product's demand is unaffected by price.For example: if a product is elastic, the price goes up and demand goes down, or the price goes down and demand goes up. Examples are electronics, candy and junk food, and even cars.If a product is inelastic, the demand will stay the same no matter the price. Examples are medical supplies.
A price cut will increase the revenue a firm receives if the demand for its product is?
Either elastic or inelastic
What goods or services might a tax increase be hardest to pass on to consumers?
a product with elastic demand
