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When the price of a good changes what effect tend to create the law of demand?
Wiki User
∙ 12y ago
the term real income effect applies to it at that point which define's as an individual cannot keep buying the same quantity of a product of its price rises while there income stays the same
Wiki User
∙ 12y ago
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What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
What are the determinants that create changes in price?
The main two are supply and demand
If price changes have little effect on the quantity of a product demanded the product is said to have?
inelastic demand
Price elasticity of demand for luxury goods will be?
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
If a price increase has little or no effect the demand for the product is?
When a price increase has little or no effect on the demand for a product, it is inelastic.
What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
What are the determinants that create changes in price?
The main two are supply and demand
If price changes have little effect on the quantity of a product demanded the product is said to have?
inelastic demand
Why does trading stock create volatility?
Simple answer is that volatility is simply price change. Price changes due to supply and demand so when people trade a stock it affects supply and demand.
Price elasticity of demand for luxury goods will be?
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
How do the changes of demand affect the price?
Higher demand, the higher the price goes. Remove the demand for something and then the price drops.
When the price of good changes what effects tend to create the law of demand?
the term real income effect applies to it at that point which define's as an individual cannot keep buying the same quantity of a product of its price rises while there income stays the same
If a price increase has little or no effect the demand for the product is?
When a price increase has little or no effect on the demand for a product, it is inelastic.
How will demand effect price and quantity?
High Demand Lowers QuantityLow Demand increases price and quantity
How elasticity of demand effect managerial decisions?
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.
When a change in price does not lead to changes in demand the demand is called?
inelastic demand
Change in market price?
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.
