Describe the process of price elasticity. Give an example of a product or service that has an inelastic demand.
Elasticity means responsiveness of one variable with respect to another variable
So price elasticity refers to the percentage change of quantity demanded or supply with respect to the percentage change in the price.
Inelastic demand is those type of demand in which even there is a very high Change in the price but quantity demand is not very much affected .
The best example is is necessity goods ike water ,because even the price of water gets too much higher since it is a necessity people will buy it
Describe the process of price elasticity. Give an example of a product or service that has an inelastic demand.
Give an example of a product that has price elasticity and a product that does not have price elasticity and give reasons why for each. It's a good idea to also offer substitutes for those products when defending your arguments.
Draw an inelastic supply curve, give an example of a good with a relatively inelastic supply? Draw an elastic supply curve, give an example of a good with a relatively elastic supply? Draw an inelastic demand curve, give an example of a good with a relatively inelastic demand? Draw an elastic demand curve, give an example of a good with a relatively elastic demand? How do we define elasticity when: the elasticity is 1 the elasticity is 1.5 the elasticity...
Select a product or service and discuss your subjective estimate of its price elasticity of demand. Is it highly elastic or inelastic, unitary elastic, etc.? Does it matter if you select a specific brand of a product, such as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline versus gasoline in general? What is the relationship between price elasticity and the effect on total revenue if the price of your product or service goes up or down?
Give an example of a good or service that will have a negative income elasticity of demand but a low price elasticity of demand. Explain carefully why.
1. Define Demand Elasticity: 2. Define Elastic Demand and give a product example: 3. Define Inelastic Demand and give a product example: 4. Typically when the price of a product falls the Total Revenue (TR) for the company making the product will: increase/decrease (circle one) if the product has an elastic demand and increase/decrease (circle one) if the product has an inelastic demand.
If the demand for a product is price inelastic: an increase in price will increase total revenue. the price elasticity coefficient will be greater than one. an increase in price will decrease total revenue. a decrease in price will result in a decrease in demand.
1. Suppose the price elasticity of demand for farm products is inelastic and the federal government wants to follow a policy of increasing income for farmers. To accomplish this goal, the government will promote the programs that.........(increase or decrease) the price of farm products, knowing that the percentage change in price will be......…...(exactly the same as, Greater than, or smaller than) the percentage........(increase or Decrease) in quantity. 2. Suppose the price elasticity of demand for used cars is estimated to...
1. What is meant by the price elasticity of demand? How is it calculated? What does this particular calculation tell us? 2. Explain the difference between elastic and inelastic. Provide a real-life example of a good or service and describe whether or not demand for this particular good is elastic or inelastic. 3. When is demand perfectly inelastic? When is demand perfectly elastic? Explain the difference between these two terms. Provide examples. 4. Describe the difference between a price effect...
The following scenarios describe the price elasticity of supply and demand for a particular good. Elastic demand, inelastic supply Elastic demand, elastic supply Inelastic demand, elastic supply Inelastic demand, inelastic supply In which scenario will a subsidy increase consumption the most? (Click to select) Elastic demand, inelastic supply Elastic demand, elastic supply Inelastic demand, elastic supply Inelastic demand, inelastic supply
•Evaluate the elasticity of demand for your product by applying a minimum of two elasticity determinants. Does your product likely have an elastic or inelastic demand based upon your evaluation of factors influencing the price elasticity of demand? How will considering these elasticity determinants impact product revenue?