1. Determinants of the price elasticity of demand
Consider some determinants of the price elasticity of demand:
• The availability of close substitutes
• Whether the good is a necessity or a luxury
• How broadly you define the market
• The time horizon being considered
A good without any close substitutes is likely to have relatively demand, since consumers cannot easily switch to a substitute good if the price of the good rises.
A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the most elastic demand?
1-Yacht
2-Amputation procedures for diabetes sufferers
The price elasticity of demand for a good also depends on how you define the good.
Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.
Categories
Most Elastic
In Between
Least Elastic
Food
Red bell peppers
Vegetables
The price elasticity of demand is also affected by the given time horizon.
Other things being equal, the demand for natural gas will tend to be elastic in the short run than in the long run
Answers: 1
Business, 22.06.2019 13:00, dolltan
Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?
Answers: 1
Business, 22.06.2019 17:50, hinokayleen5053
Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.
Answers: 1
Business, 23.06.2019 12:30, kkmwkk031
Which of the following is true of the strategy of planned and unplanned change in global marketing? a) cultural congruence involves deliberately changing certain aspects of culture to meet marketing goals. b) all marketing efforts require planned or unplanned change in order to be accepted. c) planned change involves marketing products similar to the ones already on the market. d) the first step in bringing about planned change in a society is to remove obstacles for acceptance of a product. e) social planners gained the acceptance of protein-rich diets among the peoples of underdeveloped societies using the strategy of planned change.
Answers: 2
1. Determinants of the price elasticity of demand
Consider some determinants of the price elasticit...
Biology, 26.07.2019 21:30
Biology, 26.07.2019 21:30
History, 26.07.2019 21:30
Biology, 26.07.2019 21:30
Biology, 26.07.2019 21:30
Chemistry, 26.07.2019 21:30
Mathematics, 26.07.2019 21:30