in oligopoly what is the nature of price elasticity
Explain how price and output decision are taken under conditions of oligopoly.
Oligopoly
Oligopoly is a market from where large numbers of buyers contact few sellers for the purpose of buying and selling things. The different types are a pure oligopoly, a differentiated oligopoly, a collusive oligopoly, and a non-collusive oligopoly.
An oligopoly is characterized by a market with a few firms having a negligible effect on price.
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
Explain how price and output decision are taken under conditions of oligopoly.
Oligopoly
Oligopoly is a market from where large numbers of buyers contact few sellers for the purpose of buying and selling things. The different types are a pure oligopoly, a differentiated oligopoly, a collusive oligopoly, and a non-collusive oligopoly.
An oligopoly is characterized by a market with a few firms having a negligible effect on price.
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
There must be a change in the price to calculate the price elasticity. Elasticity depends on the changes in the demand of a good or service based on the change in the price of a good or service.
Perfect competition is perfectly elastic (taken from my Economics textbook)...still searching on the other three.
Perfect competition is perfectly elastic (taken from my Economics textbook)...still searching on the other three.
distinguish between price elasticity of demand and income elasticity of demand
To calculate the quantity demanded when the elasticity is given, you can use the formula: Quantity Demanded (Elasticity / (1 Elasticity)) (Price / Price Elasticity). This formula helps determine the change in quantity demanded based on the given elasticity and price.
price elasticity