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What luxuries do you think would have a higher price elasticity than other?
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What is the definition of price elasticity on demand?
the higher the price,the shorter the quantity
How does price elasticity of demand affect a firm's pricing decisions?
The price elasticity of demand affects a firm's pricing decisions by determining the optimal profit margin. Price elasticity of demand describes the rate of change of demand in response to a change in price. The higher it is, the higher demand changes in respond to price; lower means very little change. For a good with low elasticity, it is easier to profit off marking-up the price because demand falls little in response to a price increase. For a high elasticity, prices should approach equilibrium because straying from equilibrium results in a higher change in demand than in price.
Point elasticity of supply?
The point elasticity of supply is a measure of the rate of response of quantity demand due to a price change. The higher the elasticity, the more sensitive the sellers are to these changes.
What are different types of elasticity?
The elasticity of demand refers to how sensitive the demand for a good is to changes in other economic variables. The different types are: price elasticity, income elasticity, cross elasticity and advertisement elasticity.
What is the price elasticity in a oligopoly?
in oligopoly what is the nature of price elasticity
What is the definition of price elasticity on demand?
the higher the price,the shorter the quantity
Distinguish between price elasticity and income elasticity?
The price elasticity refers to the change in demand due to the change in price. The income elasticity of demand on the other hand refers to the change in demand due to the change in income.
How does price elasticity of demand affect a firm's pricing decisions?
The price elasticity of demand affects a firm's pricing decisions by determining the optimal profit margin. Price elasticity of demand describes the rate of change of demand in response to a change in price. The higher it is, the higher demand changes in respond to price; lower means very little change. For a good with low elasticity, it is easier to profit off marking-up the price because demand falls little in response to a price increase. For a high elasticity, prices should approach equilibrium because straying from equilibrium results in a higher change in demand than in price.
Point elasticity of supply?
The point elasticity of supply is a measure of the rate of response of quantity demand due to a price change. The higher the elasticity, the more sensitive the sellers are to these changes.
What are different types of elasticity?
The elasticity of demand refers to how sensitive the demand for a good is to changes in other economic variables. The different types are: price elasticity, income elasticity, cross elasticity and advertisement elasticity.
What are the main determinant of price elasticity of demand in the Caribbean?
The availability of substitutes Habit- Forming Goods 'Luxuries' and 'necessities' The proportion of income which is spent on the commodity The long run and short run.
What is the price elasticity in a oligopoly?
in oligopoly what is the nature of price elasticity
What is price elasticity?
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
What other elasticities of demand are there besides price income and cross-price?
Adverisement Elasticity of Demand
When is price elasticity inelastic?
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
What is Ramsay pricing?
it assigns costs based on the price elasticity of demand. het higher the elasticity (elastic), the lower the charge of fixed costs when allocated amongst products.
Can you find price elasticity if there is no change in price?
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.
