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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.
don't tell, RES
What else can I help you with?
If a good increase in price and demand drops is the demand inelastic or elastic?
If a good experiences a price increase and a significant drop in demand, it indicates that the demand for that good is elastic. Inelastic demand would typically show little change in quantity demanded despite price fluctuations. Elastic demand means consumers are sensitive to price changes, leading to a considerable reduction in demand when prices rise.
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.
Which explains how elastic demand would most likely affect consumer demand?
Elastic demand refers to a situation where the quantity demanded of a good or service significantly changes in response to price fluctuations. When demand is elastic, a small decrease in price can lead to a substantial increase in consumer demand, as buyers are more sensitive to price changes. Conversely, if prices rise, consumers may significantly reduce their purchases or seek alternatives. This responsiveness can influence pricing strategies and revenue for businesses, as they must consider how price changes will impact overall demand.
If a good increase in price and demand drops is the demand inelastic or elastic?
If a good experiences a price increase and a significant drop in demand, it indicates that the demand for that good is elastic. Inelastic demand would typically show little change in quantity demanded despite price fluctuations. Elastic demand means consumers are sensitive to price changes, leading to a considerable reduction in demand when prices rise.
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.
Which explains how elastic demand would most likely affect consumer demand?
Elastic demand refers to a situation where the quantity demanded of a good or service significantly changes in response to price fluctuations. When demand is elastic, a small decrease in price can lead to a substantial increase in consumer demand, as buyers are more sensitive to price changes. Conversely, if prices rise, consumers may significantly reduce their purchases or seek alternatives. This responsiveness can influence pricing strategies and revenue for businesses, as they must consider how price changes will impact overall demand.
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.
Would a monopolist ever operate in the in elastic portion of demand curve?
yes
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.
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.
1- If the price elasticity of demand for The Wall Street Journal is -13 demand is said to be a elastic. b unit elastic. c perfectly elastic. d inelastic?
If the price elasticity of demand for The Wall Street Journal is -13, demand is said to be elastic (option a). This means that a 1% increase in price would lead to a 13% decrease in quantity demanded, indicating a high sensitivity to price changes. Elastic demand typically has an elasticity greater than 1 in absolute value.
Which would make more elastic demand Cheerios OR All Breakfast Cereal and why?
All breakfast cereal would generally have more elastic demand compared to Cheerios. This is because all breakfast cereal encompasses a wide range of substitutes, allowing consumers to easily switch to alternatives if prices rise. In contrast, Cheerios is a specific brand with fewer substitutes, making its demand more inelastic as loyal customers may continue purchasing it despite price increases.
