0
Why demand for soft drink as a whole inelastic but demand for Coca Cola is elastic?
Wiki User
∙ 11y ago
the demand for cold drink as whole is inelastic bcoz the price wont have much effect on its demandbt price for coca cola is elastic because if pric of coca cola will increase then its substitute pepsi is available
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Why demand for soft drink as a whole inelastic but demand for Coca-Cola is elastic?
Because there are many alternative brands for Coca Cola that have more or less the same taste. When the price of coca cola rises, demand decreases because consumers will find alternative brands that taste the same but at a lower price, therefore demand is elastic. Demand for soft drink as a whole is inelastic because whether or not the price increases/decreases, demand would not decrease/increase by a whole lot, since it's the consumers' preferred choice of drinks (just like milk is inelastic). Just because the price increases, doesn't mean that consumers will start to drink water all the time, they'll just drink less amounts of soft drink than usual (and vice versa).
If because a modest price increase has little or no effect the demand for the product is?
If a modest price increase has little no no effect on the demand it means that the product is inelastic. Inelastic goods are those that people will need no matter what the price is, such as most medications, and food as a whole (not specific brands). Elastic goods are defined as goods were the demand fluctuates as the price fluctuates. These are different brands of foods (If Dole starts to charge more for apple juice consumers will switch to Tropicana orange juice.)
Is price elasticity of demand considered elastic or inelastic with the automotive industry?
I'm assuming you're asking this in terms of economics. In which case, yes the auto industry is demand elastic. This can be seen from a few views. Firstly, within vehicles themselves, there are many brands and models available for purchase. None of which is exacly like the other. Therefore the consumer has the ability to easily switch products for another make/model of vehicle. Secondly, the auto industry itself as a whole has viable alternatives. If the prices of the entire auto industry were to rise, then consumers have the ability to purchase other forms of transportation, including but no limited to: public transportation, bicycles, scooters, mopeds etc. Examples of this may be seen in some lower income countries where vehicle purchases are low relative to other forms of transportation. Hope i answered your question in detail. sorry if some of it doesnt make sense but i typed in a hurry
Modern theory of wages?
We have studied various theories which explain the determination of wages but they all stand discredited as they do not offer satisfactory explanation of wages. The modern economists are of the opinion that just as the price of a commodity is determined by the interaction of the forces of demand and supply, the rate of wages cal also be determined in the same way with the help of usual demand and supply analysis. Let us now discuss in brief as to what we mean by demand and supply of labour.1) Demand for Labour:There are various factors which influence the demand for labour. These factors in brief are as under.(a) Demand for labour is derived demand: Demand for labour is not a direct demand. It is derived from the demand for the commodities and services, it helps to produce. If the demand for a product is high in the market, the demand for labour producing that particular commodity will also be high. In case the demand for commodity is small the demand for that labour will also be low.(b) Elasticity of demand for the product: If the demand for a particular product is inelastic, the demand for the type of labour that produces this product will also be inelastic. The demand for labour will be elastic if cheaper substitute of the product are available in the market or the demand for the commodity it produces is elastic.(c) Proportion of labour cost to total cost: If the wages of workers account for only a small proportion to total cost of product then the demand for labour will tend to be inelastic. In capital intensive industry. For instance, a slight increase in the workers wages will have little effect on unit cost of product; so the rise in wages will not reduce the demand for labour.(d) Availability of substitutes for labour: If the substitutes of labour producing a particular product are easily available in the market, the demand for labour will then be elastic.After considering the various factors which influence the demand for labour, we now take up the demand price of labour.Demand Price of Labour: An employer hires a labour in order to make profit. He while employing a worker, compares the cost of hiring a worker to the contribution he is expected to make the total revenue of the firm. So long as the addition made by the labour to the revenue is greater then the cost of employing him, the entrepreneur will engage that labour. In other words we can say that so long as the marginal revenue product of labour is higher than the cost of employing him, the employer employs that worker. The entrepreneur will continue hiring the worker up to the point at which the cost of employing a worker is just equal to the marginal revenue product of the labour.2) Supply of Labour:The supply of labour for the entire economy is influenced by various factors such as wage rate, size of population, age composition, availability of education and training, the length of training period, provision of opportunities for women to work, the social security program etc.The supply of labour for the industry as a whole is less elastic in short run. The supply of labour here depends on the availability of workers in the locality and from the nearby areas ad the willingness of the labour to work overtime. In the long run supply of labour for the industry is more elastic. The labour can be affected by offering hire wages, providing training facilities, making working conditions pleasant etc. So the supply of the labour for the industry is of the normal shape rising upward from left to right.In the above figure supply curve of labour to an industry shows an upward slope. At OW wage rate, ON workers are ready to work. At OW' wage, the supply of labour increases to ON'.Wage Determination: So far we have discussed the forces operating behind the demand for and supply of labour in competitive market. At regards the price or the wage of particular grade of labour, it is determined by the interaction of the forces of demand for and supply of in the competitive market. The determination of wage rate is explained with the help of following diagrams.In figure (a) DD' is the demand curve of labour say carpenters to the industry. It is found by summations of the demands of carpenters of all the firms. Similarly SS' represents the supply curve of carpenters to industry. The market demand curve DD' intersects the market supply curve SS' at point ON. The equilibrium wage rate NL or Rs. 20 and the number of workers hired at the equilibrium wage rate (Rs. 20) is 200 thousand. Figure (b) shows that a firm in competitive market takes the market wage rate of carpenters as given. So the supply curve which it faces is a horizontal one. A firm will continue hiring labour so long the MRP is higher then the wage rate. When the MRP and the wage rate are equal, it will stop employing further labour. The firm at the wage rate of Rs. 20 per hour employs 40 workers. We thus conclude that in a competitive market the wages are set in the market much like other prices.
Difference between firms's demand curve and industry demand curve in Perfect competition?
Regard the "move-up"s of the whole industry's demand curve as a "dynamic process" at different times. When it happens to intersect with supply curve under perfect competition, we get the equilibrium price and quantity. At this time, firms seem like find their best "time" in the "dynamic process". So during this "time", the price for firms is perfect elastic because neither consumers would buy the product at a higher price nor firms would sell the product at a lower price. To sum up, the difference is -- the firm has a horizontal demand curve while the industry has a down-slope one under perfect competition.
Why demand for soft drink as a whole inelastic but demand for Coca-Cola is elastic?
Because there are many alternative brands for Coca Cola that have more or less the same taste. When the price of coca cola rises, demand decreases because consumers will find alternative brands that taste the same but at a lower price, therefore demand is elastic. Demand for soft drink as a whole is inelastic because whether or not the price increases/decreases, demand would not decrease/increase by a whole lot, since it's the consumers' preferred choice of drinks (just like milk is inelastic). Just because the price increases, doesn't mean that consumers will start to drink water all the time, they'll just drink less amounts of soft drink than usual (and vice versa).
If because a modest price increase has little or no effect the demand for the product is?
If a modest price increase has little no no effect on the demand it means that the product is inelastic. Inelastic goods are those that people will need no matter what the price is, such as most medications, and food as a whole (not specific brands). Elastic goods are defined as goods were the demand fluctuates as the price fluctuates. These are different brands of foods (If Dole starts to charge more for apple juice consumers will switch to Tropicana orange juice.)
Demand for mobile phone is likely to be price elastic or price inelastic?
As a whole, the mobile phone market is pretty elastic - it's not a necessity and there are already a lot of phones out there, so if prices were to go up fewer people would buy new phones and fewer people would upgrade their existing phones (the very definition of elastic). On the other hand, for certain professions mobile phones are very necessary. On-call doctors, many upper-level businesspeople, anybody who *must* be reachable as a part of their work, they all will exhibit inelastic buying behavior. Whether the phone cost $100 or $1000, if they have to have it to do their job, they'll spend the money so they can continue to work.
Why does a balloon pop when filled with air?
Because the elastic stretches too far and the elastic snaps causing the whole balloon to pop
Is the demand for a particular brand of car like a Chevrolet likely to be more or less price elastic than the demand for all cars?
The specific brand will be more elastic. The demand for cars in general is more or less related only to the population, economic distribution, and the extent to which the public is enviromentally concious. The demand for a specific brand, by contrast, is affected by all these and by the success of the company's advertizing, the quality of their manufacturing compared to other companies, random problems with their manufactoring process or shipping, and a whole bunch of other highly variable things that don't play a major role at the larger scale of the entire car industry.
Is price elasticity of demand considered elastic or inelastic with the automotive industry?
I'm assuming you're asking this in terms of economics. In which case, yes the auto industry is demand elastic. This can be seen from a few views. Firstly, within vehicles themselves, there are many brands and models available for purchase. None of which is exacly like the other. Therefore the consumer has the ability to easily switch products for another make/model of vehicle. Secondly, the auto industry itself as a whole has viable alternatives. If the prices of the entire auto industry were to rise, then consumers have the ability to purchase other forms of transportation, including but no limited to: public transportation, bicycles, scooters, mopeds etc. Examples of this may be seen in some lower income countries where vehicle purchases are low relative to other forms of transportation. Hope i answered your question in detail. sorry if some of it doesnt make sense but i typed in a hurry
How do you use mega clean?
You can drink the whole bottle at a time. Rinse out the bottom, then fill with water and drink the whole thing again.
How do you drink your wee?
somehow get your whole family to wee in a bucket for a whole season , then get a cup, scoop wee up then drink it -YUCK-
Do you have to drink the whole glass of alka seltzer?
sometimes...
Is the Jamaican Fruit Drink famous in Jamaica?
yes it sure is. it can be the best fruit drink in the whole carribean
Why does Mandy insist ella to drink her tonic?
the whole sunner
What is the best drink to drink daily?
Water. No calories, no sugar plus it helps your whole body function properly!
