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Elasticity is crucial for farmers as it helps them understand how changes in price can affect the supply and demand for their crops. By knowing the price elasticity of their products, farmers can make informed decisions about production levels, pricing strategies, and market timing. This understanding aids in optimizing revenue and managing risks associated with fluctuating market conditions. Ultimately, it enables farmers to respond effectively to consumer behavior and market trends.
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Why is elasticity an important concept for a business like beachfront properties?
Elasticity an important concept for a business like beachfront properties because it determines how much the value of the property could potentially fluctuate. If the price goes down, demand increases.
Explain why elasticity of demand is such an important concept to marketers who sell a commodity product?
Elasticity of demand is important to marketers because it helps them know the optimal price for the product. When a product is priced too high, the consumers may opt for a competitor's product.
Why is elasticity of demand a fine theoretical concept of economists but difficult for marketers to use in practice?
it is what elasticity of demand
Why elasticity concept is required by managers?
Elasticity helps to find optimal production quantities and thus optimal profits.
What are the benefits of elasticity to government?
How can government benefit from the elasticity concepts? Analyse the various economic policies which will benefit from the concept.
Why is elasticity an important concept for a business like beachfront properties?
Elasticity an important concept for a business like beachfront properties because it determines how much the value of the property could potentially fluctuate. If the price goes down, demand increases.
Explain why elasticity of demand is such an important concept to marketers who sell a commodity product?
Elasticity of demand is important to marketers because it helps them know the optimal price for the product. When a product is priced too high, the consumers may opt for a competitor's product.
Demonstrate the Relationship between elasticity and totoal revenue?
how government use the elasticity concept to genrate revenue
Why is elasticity of demand a fine theoretical concept of economists but difficult for marketers to use in practice?
it is what elasticity of demand
Why elasticity concept is required by managers?
Elasticity helps to find optimal production quantities and thus optimal profits.
What are the benefits of elasticity to government?
How can government benefit from the elasticity concepts? Analyse the various economic policies which will benefit from the concept.
Why is elasticity an important concept for toll bridges?
It's not. A toll bridge can be rigid. Now if you were to ask the same and omit 'toll'..... bridges depending on type, need flexibility and elasticity for contraction and expansion during changes in ambient temperature and ground movement
What is the concept of unit elasticity and how does it apply in economics?
Unit elasticity is a concept in economics that describes a situation where the percentage change in quantity demanded or supplied is equal to the percentage change in price. In other words, when the price changes by a certain percentage, the quantity demanded or supplied changes by the same percentage. This means that the elasticity coefficient is equal to 1. Unit elasticity is important in economics because it indicates a balanced relationship between price and quantity, where changes in price have a proportional impact on demand or supply.
Who evolved concept of elasticity of demand?
The concept of elasticity of demand was primarily evolved by economists Alfred Marshall and Arthur Cecil Pigou. Marshall introduced the idea in his seminal work "Principles of Economics" in the late 19th century, where he defined elasticity as a measure of how quantity demanded responds to price changes. Pigou later refined the concept, helping to establish it as a fundamental principle in microeconomic theory.
Where is lake maricibo?
with example explain the concept of of elasticity of supply and interpretating the result graphical and descuse the relationship between price elasticity and suppliers total revenue
What came up with elasticity?
Elasticity, in economic terms, refers to the responsiveness of one variable to changes in another variable, typically used to measure how the quantity demanded or supplied of a good responds to changes in price. The concept was developed in the 19th century, with significant contributions from economists like Alfred Marshall, who formalized the concept in his work on supply and demand. Elasticity can be categorized into different types, such as price elasticity of demand, income elasticity, and cross-price elasticity, each providing insights into consumer behavior and market dynamics.
Explain the concept of price cross elasticity of demand explain its practical importance?
Price cross elasticity of demand measures the responsiveness of the quantity demanded for one good when the price of another good changes. It helps identify whether two goods are substitutes (positive elasticity) or complements (negative elasticity). This concept is practically important for businesses and policymakers, as it informs pricing strategies, product positioning, and market analysis, allowing firms to anticipate changes in consumer behavior and adjust their offerings accordingly. Understanding cross elasticity can also influence decisions on taxation and regulation by highlighting the interdependencies between different markets.
