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A good with elastic demand is one where a small change in price leads to a significant change in the quantity demanded. For example, luxury items like designer clothing or electronics often exhibit elastic demand; if their prices rise, consumers may quickly reduce their purchases or switch to alternatives. Conversely, essentials like bread or milk typically have inelastic demand, as consumers will buy them regardless of price changes.
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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.
What effect does the availability of many good substitutes have on the elasticity of demand for a good?
Demand is elastic
If a good increase in price and demand drops is the demand inelastic or elastic?
If a good experiences a price increase and a significant drop in demand, it indicates that the demand for that good is elastic. Inelastic demand would typically show little change in quantity demanded despite price fluctuations. Elastic demand means consumers are sensitive to price changes, leading to a considerable reduction in demand when prices rise.
When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
When elasticity of demand for a good is exactly 1 how is demand described?
It means it is Unitary elastic.
When demand is elastic?
The demand is elastic when the price is low. So people will buy more good so that it's demand will become more elastic. Moreover ,the demand is elastic when there are some new inventions.
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.
What effect does the availability of many good substitutes have on the elasticity of demand for a good?
Demand is elastic
What does the availability of many substitutes have on the elasticity of the demand for a good?
Demand is elastic
If a good increase in price and demand drops is the demand inelastic or elastic?
If a good experiences a price increase and a significant drop in demand, it indicates that the demand for that good is elastic. Inelastic demand would typically show little change in quantity demanded despite price fluctuations. Elastic demand means consumers are sensitive to price changes, leading to a considerable reduction in demand when prices rise.
When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
When elasticity of demand for a good is exactly 1 how is demand described?
It means it is Unitary elastic.
What do positive and negative cross elasticity indicate?
the demand for good A and the demand for good B are both price elastic
Demand and its types?
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
When a firm's marginal revenue is zero what can be said about the elasticity of demand for the output of the firm A. Demand is inelastic. B. Demand is elastic. C. Demand is unit elastic.?
Demand is unit elastic.
If a good is inferior in an economic sense income elasticity will?
demand rice elastic
Demand is said to be elastic if?
buyers do not respond much to changes in the price of the good.
