0
If you were a business owner how would you use price elasticity of demand to determine?
Wiki User
∙ 15y ago
"Price Elasticity of Demand" is a measure of how much the demand for a good or service changes when the price changes.
For example, most of us drive our cars to work. We drive our cars to work whether the price of gasoline is $1.50 a gallon or $3.95 a gallon. The demand is "INELASTIC" or not changing, no matter what happens to the price. Some people can cut back our leisure driving, or carpool, or take public transit - but others cannot. Truck drivers can't stop when diesel fuel gets too expensive.
Movie ticket prices are inelastic; ticket prices have gone from $3 to $5 to $8 to $10 without affecting ticket sales.
Airplane tickets, on the other hand, are fairly elastic; when the price goes up, the demand goes down.
Once you figure out what the price elasticity is for your product, you can figure out how to maximize your profits by either raising prices if the price is inelastic, or CUTTING prices to increase sales if the price is very elastic.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What do you call a woman who is the owner of a business?
a business owner
How do you put your title on a business card if you are the business owner?
Proprietor Depending on the type you could try: Owner/Operator Owner/CEO
Who owns and controls businesses?
The owner owns the business. Him and other superiors can control the business. Whoever the owner approves of can control the business.
A woman who is the owner of a business?
proprietress
Is the owner the CEO of a business?
vnblaegluvbfdsvfvf
Why would understanding elasticity benefit a small business owner?
It tells the business owner what their demands will be.
If the demand of a product increases but the supply does not is it better for the consumer or the business owner?
For the business owner
Why does job exist?
*A business or organisation is expanding. *A high demand has caused the owner or boss to have a position opening.
Why job exist?
*A business or organisation is expanding. *A high demand has caused the owner or boss to have a position opening.
If the sole owner of a business dies and there is an authorized signer on the account is he the owner of the funds?
No. The funds still belong to the company. The owner's will or estate will determine who owns the company.
How can organizations determine if they are structured in the most effective and efficient manner?
The best way to determine if a business is structured appropriately is to use models. A business owner can play with their numbers to ensure their business structure provides the best tax advantages for the organization.
Can the owner of the condominium open the business in condo?
Read your governing documents to determine the uses for your property allowed by the association.
What factors affect pricing when determining a new selling price?
· The cost of production · The market demand for the product · The desired markup by the business owner
What do you call a woman who is the owner of a business?
a business owner
What is a name for a business owner?
Another name for a small business owner is "proprietor." In the US, if the owner is doing business as an LLC, he is a "member."
What is the significance of market research to the small business owner?
Market research helps determine the target audience of a business, which is crucial for being able to find customers that have the need for the product/service.
Why is owner of a business is interested in the activity of a business?
The activity of the business is what generates money for the business and the owner will want to maximize income.
