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Would the demand tend to be more or less elastic for consumers time horizon?
Wiki User
∙ 12y ago
Generally, product demand is more elastic the longer the time period under consideration. Consumers often need time to adjust to changes in prices. (McConnell & Brue p.346) "Short run" demand (like buying items at an auction) is more inelastic than is "long run" demand ( like shopping at your favorite department stores) where you can have "time to think about it".
Price elasticity of demand is greater...(d) the longer the time period involved (348).
Economics: principles, problems, and policies / Campbell R. McConnell, Stanley L. Brue.-17th ed.
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Wiki User
∙ 12y ago
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How is elastic demand represent graphically?
A perfectly elastic demand is represented on the traditional supply and demand graph with a straight horizontal line. An elastic demand that is not perfect would be represented as any line with a slope between 0 and -1.
When a product is known to have an 'elastic demand' it means?
When a product has elastic demand it means that a change in price will have a subsequent change in price. An example of an elastic good is a fuji apple. If the prices of fuji apples increase, then consumers will buy a substitute, like a pear instead. Say we are given a good, like food (in general), this product would be inelastic. Even a large increase in price would could little change in demand because people need this good.
Distinguish between elastic and inelastic demand?
An example of perfectly inelastic demand would be a life-saving drug that people will pay any price to obtain. Elastic demand is the opposite of this.
What do you call a good whose income elasticity is less elasticity of demand?
A. Explain whether demand would tend to be more or less elastic for each of the following three determinants of elasticity demand.1. Availability of substitute goods2. Share of consumer income devoted to a good3. Consumer's time horizon
What is the distinctive feature of the demand curve of a firm in pure competition?
The demand curve would be perfectly elastic.
How is elastic demand represent graphically?
A perfectly elastic demand is represented on the traditional supply and demand graph with a straight horizontal line. An elastic demand that is not perfect would be represented as any line with a slope between 0 and -1.
When a product is known to have an 'elastic demand' it means?
When a product has elastic demand it means that a change in price will have a subsequent change in price. An example of an elastic good is a fuji apple. If the prices of fuji apples increase, then consumers will buy a substitute, like a pear instead. Say we are given a good, like food (in general), this product would be inelastic. Even a large increase in price would could little change in demand because people need this good.
Distinguish between elastic and inelastic demand?
An example of perfectly inelastic demand would be a life-saving drug that people will pay any price to obtain. Elastic demand is the opposite of this.
What do you call a good whose income elasticity is less elasticity of demand?
A. Explain whether demand would tend to be more or less elastic for each of the following three determinants of elasticity demand.1. Availability of substitute goods2. Share of consumer income devoted to a good3. Consumer's time horizon
What is the distinctive feature of the demand curve of a firm in pure competition?
The demand curve would be perfectly elastic.
What type of demand does salt and television and food grains have?
I would say that salt and food grains have an inelastic demand and television has an elastic demand.
Would a monopolist ever operate in the in elastic portion of demand curve?
yes
Will a monopolist charge a lower price where demand is price elastic and a higher price where demand is price inelastic?
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
How does the incidence of a tax use the price elasticity of supply and demand?
If the demand is perfectly elastic in prices (that is, demand falls to zero if the price for consumers is raised even the slightest bit), then the entire tax incidence falls on the producer since the producer would rather face the entire tax burden than lose all his consumers. And if the demand is perfectly inelastic (doesn't change with change in commodity price) then the entire burden falls on the consumers. So higher the price elasticity of demand, higher would be the share of taxes borne by the producer. And higher the price elasticity of supply, lower the share borne by the producer, by similar logic.
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).
What term describes the total demand of all consumers for a company's product or service?
market demandAnother AnswerGlobal market demand would cover all consumers.
How does supply and demand affect consumers?
Supply and demand are vital to consumers. If a product is in high demand the supply has to go up which can increase prices because of the demand. Prices end up going up because more has to be shipped and it would have to get to the location of demand in a certain time.
