Gas, fresh fruits and veggies, and cereal.
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
the demand for good A and the demand for good B are both price elastic
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
If the price is expected to drop, current demand will fall.
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
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.
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
the demand for good A and the demand for good B are both price elastic
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
If the price is expected to drop, current demand will fall.
If the price is expected to drop, current demand will fall.
buyers do not respond much to changes in the price of the good.
If the price is expected to drop, current demand will fall.
Elasticity of demand measures how much demand for a product will change if the price of that product is changed. Something highly elastic will be greatly affected by price changes (something like a hotdog for example, if a vendor raises his price then demand will drop because people can go elsewhere-demand is elastic). So management must be aware of how consumers will react to price changes. Normally, lowering the price of a good will bring in more customers if the demand for that good is elastic. If it is inelastic, then a lower price will not increase demand much.
Demand for a good can be elastic at a low price but inelastic at a high price. YouRE VERY WULCOM novanet ANSWER =)