Tag Archives | elasticity

What are the different kinds of elasticity of supply?

What are the different kinds of elasticity of supply? Elasticity of supply of a commodity is the degree of responsiveness of the quantity supplies to changes in price. Like the elasticity of demand, the elasticity of supply..

By |2011-06-17T18:07:00+00:00June 17, 2011|Economics|Comments Off on What are the different kinds of elasticity of supply?

9 factors that determines the elasticity of demand

9 most essential factors that determines the elasticity of demand are : 1. Nature of goods 2. Availability of substitutes 3. Alternative use 4. Possibility of postponing consumption 5. Proportion of income spent 6. Price-level 7. Force of habit 8. Durability of commodities and 9. Income level.

By |2011-05-30T02:55:48+00:00May 30, 2011|Economics|Comments Off on 9 factors that determines the elasticity of demand

What do you mean by elasticity of demand?

The law of demand indicates the direction of change in quantity demanded in response to a change in price. It does pot precisely express the magnitude of change in amount demanded in response to a change in price.

By |2011-05-30T02:44:02+00:00May 30, 2011|Economics|Comments Off on What do you mean by elasticity of demand?

Brief note on elasticity of demand

The law of demand states that that there is and inverse relationship between price and quan­tity demanded. However, it does not explain as to how much change will take place in demand as a result of a given change in price.

By |2011-04-11T07:16:48+00:00April 11, 2011|Notes|Comments Off on Brief note on elasticity of demand

10 factors that governs the elasticity of demand of a commodity

There are several factors governing the elasticity of demand for a commodity. They are explained below. A commodity will have elastic demand if there are good substitutes for it. A small rise in the price of a commodity will send buyers to the substitutes. A lower price of a commodity will invite the former buyers of the substitute goods.

By |2011-03-10T11:49:27+00:00March 10, 2011|Economics|Comments Off on 10 factors that governs the elasticity of demand of a commodity

What are the various uses of elasticity of demand?

Elasticity of demand (and for that purpose, even elasticity of supply) plays an indispensable role in economic decisions of the community. This is because whether an economic decision is beneficial or not to the decision-maker unit depends, to a large extent, upon the elasticity of demand of the good concerned.

By |2011-02-08T17:40:24+00:00February 8, 2011|Economics|Comments Off on What are the various uses of elasticity of demand?

What are the factors to be considered while determining the price elasticity of demand?

As in most cases, price elasticity of demand is dependent upon a number of factors, of which the most important ones are the following. Generally speaking, a consumer can choose between several goods for satisfying a given want. Therefore, the demand for a good is affected not only by its own price but also by the prices of its substitutes.

By |2011-02-08T17:40:24+00:00February 8, 2011|Economics|Comments Off on What are the factors to be considered while determining the price elasticity of demand?
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