Post Tagged with: "Elasticity"

Elasticity Between Two Points

Elasticity Between Two Points

Business, Economics February 7, 2018 at 12:45 am 0 comments

Elasticity Between Two Points  Elasticity can also be calculated between two points. In this figure, elasticity from point K to L is -4. ЄKL = percentage change in Qd Percentage change in P = 16– 8 ÷ 6 – 8 8 8 = – 4 Since absolute value is greater […]

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Why We Use Percentage Change Rather Than Absolute Change in Elasticity

Why We Use Percentage Change Rather Than Absolute Change in Elasticity

Business, Economics February 6, 2018 at 3:45 pm 0 comments

WHY WE USE PERCENTAGE CHANGE RATHER THAN ABSOLUTE CHANGE IN ELASTICITY? 1. By using percentage changes and proportions we can avoid the problem of comparison in two different quantitative variables i-e Qd is measured in units and Price is measured in rupees. So by calculating percentages we can avoid the […]

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Importance of Elasticity In Our Today’s Life

Importance of Elasticity In Our Today’s Life

Business, Economics February 2, 2018 at 3:59 am 1 comment

IMPORTANCE OF ELASTICITY IN OUR TODAY’S LIFE There is much more importance of the concept of elasticity in our life. The firm which uses advertising to change prices uses the concept of elasticity of demand of its product. Mostly firms set the prices of their product by viewing at the […]

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Total Revenue And Elasticity

Total Revenue And Elasticity

Business, Economics January 7, 2018 at 12:14 am 0 comments

TOTAL REVENUE AND ELASTICITY Total revenue (TR) = Price x Quantity (P x Q) Elastic demand means when price of any product increases, its demand decreases more than the increase in price. As price increases total revenue decreases in case of elastic demand. Inelastic demand of any product means that […]

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Elastic And Inelastic Demand

Elastic And Inelastic Demand

Business, Economics January 6, 2018 at 1:55 am 0 comments

ELASTIC AND INELASTIC DEMAND Slope and elasticity of demand have an inverse relationship. When slope is high elasticity of demand is low and vice versa. When the slope of a demand curve is infinity, elasticity is zero (perfectly inelastic demand); and when the slope of a demand curve is zero, […]

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Types of Elasticity in Economics

Types of Elasticity in Economics

Business, Economics January 2, 2018 at 4:53 pm 2 comments

Types of Elasticity in Economics ELASTICITY Elasticity is a term widely used in economics to denote the “responsiveness of one variable to changes in another.” In proper words, it is the relative response of one variable to changes in another variable. The phrase “relative response” is best interpreted as the […]

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Price Elasticity of Supply

Price Elasticity of Supply

Business, Economics June 7, 2017 at 1:42 am 0 comments

PRICE ELASTICITY OF SUPPLY The relative response of a change in quantity supplied to a relative change in price. More specifically the price elasticity of supply can be defined as the percentage change in quantity supplied due to a percentage change in supply price. • Calculating elasticities between two points […]

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Point Elasticity for Quadratic Demand Function

Point Elasticity for Quadratic Demand Function

Business, Economics June 13, 2012 at 3:35 am 1 comment

POINT ELASTICITY FOR QUADRATIC DEMAND FUNCTION The quadratic demand function is Qd = 60 – 15P + P2 Assume different values of price e-g from 0 to 10. Put these values in this equation and find out the quantity demand. Here we take price from 0 to 3.

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Determinants of Price Elasticity of Demand

Determinants of Price Elasticity of Demand

Business June 8, 2012 at 2:18 am 0 comments

DETERMINANTS OF PRICE ELASTICITY OF DEMAND 1. Number of close substitutes within the market – The more (and closer) substitutes available in the market the more elastic demand will be in response to a change in price. In this case, the substitution effect will be quite strong. 2. Percentages of […]

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