All categories

1 year ago

If demand for a good is inelastic, what would the demand curve for this good look like?

Business

1 answer:

Mandarinka [93]1 year ago

8 0

Downward sloping and relatively steep.

Demand for good is said to be inelastic when there is less change in quantity demanded due to more change in price.

If there is 5% change in price of the good or services , there will be less than 5 % change in quantity demanded.

Perfectly inelastic demand refers to the no change in the quantity demanded due to change in price .

Perfectly inelastic demand curve will be vertical straight line parallel to y axis.

some examples are essential items such as medicines , it is essential for life, so consumer will buy no matter what the price is.

To know more about perfectly inelastic:

brainly.com/question/14450755

#SPJ4

You might be interested in

When the laptop market overtook the desktop market, blue tech inc., a leader in desktop technology, was left at a competitive di

Sedaia [141]

In this scenario, Blue Tech Inc.'s failure can be best attributed to <u>"Time compression diseconomies."</u>

We accept time compression diseconomies where the snappier a firm builds up the asset, the higher the improvement cost. We demonstrate that time compression diseconomies normally offer ascent to asset heterogeneity and henceforth upper hand in that one firm builds up the asset quicker than the other. We evaluate the supportability of the upper hand, determine conditions

under which the asset is "incomparable" and demonstrate that firm benefits are nonmonotonic in the degree of time compression diseconomies.

5 0

2 years ago

Northwestern Data Systems has adopted a new organizational approach with regard to information flow, ensuring that employees hav

bija089 [108]

Answer:

neither she nor her supervisor has any demonstrable reason to access such information.

Explanation:

When security measures are introduced in information system access in an organisation, an individual is limited to only a defined set of data.

Access to data outside one's normal job role requires a request for addition of such access.

In the given instance Northwestern Data Systems has adopted a new organizational approach that ensures employees have access to the only data they need.

Stacy, an administrative assistant requests a report regarding disciplinary action on a manager outside her department.

She will not be able to get it because she should normally not be able to discipline a manager.

So she can't access it because neither she nor her supervisor has any demonstrable reason to access such information.

3 0

2 years ago

Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi

stira [4]

Answer:

d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

Place more oil on the market this year, shifting the curve rightward.

Explanation:

1. In the given scenario the government is willing to give home-construction companies $10,000 for every house that they build.

This will result in more willingness on the part of the construction companies to build more houses.

More houses built means more income coming in from the government.

Therefore the supply curve of home building will shift to the right.

2. When oil producers expect prices of oil to increase in the next year, there is a need to control oil prices by increasing availability of oil in the market.

Increase in price results from a scarcity of oil. So to mitigate this excess oil is supplied to control price increase.

This action will shift the curve rightward.

6 0

2 years ago

1. Consider an economy with a population of 100,000 households. 60 percent of households reportan annual income of $25,000 ("low

Leona [35]

Answer:

The total income earned by households in this economy is:

$4,700,000,000

Explanation:

a) Data and Calculations:

Household population = 100,000

Low earners = 60% with annual income of $25,000 each

Mid earners = 30% with annual income of $70,000 each

High earners = 10% with annual income of $110,000 each

60% of the population = 60,000 (100,000 * 60%) households

30% of the population = 30,000 (100,000 * 30%) households

10% of the population = 10,000 (100,000 * 10%) households

Total income earned by the households:

Low earners = 60,000 * $25,000 = $1,500,000,000

Mid earners = 30,000 * $70,000 = 2,100,000,000

High earners = 10,000 * $110,000 = 1,100,000,000

Total income earned in the economy $4,700,000,000

3 0

2 years ago

Suppose that Dunkin Donuts reduces the price of its regular coffee from $2 to $1 per cup, and as a result, the quantity sold per

harkovskaia [24]

Answer:price elasticity of demand for Dunkin Donuts’ regular coffee is 1.8

Explanation: Using the midpoint formnulae

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

Percentage change in quantity = new quantity - old quantity / (new quantity + old quantity)/2 x 100

= 40-10/(40+10)/ 2 = 30 /25 = 1.2 x 100 =120%

Percentage change in price = new price - old price / new price + old price)/2 x 100

= 1- 2 / (1+2)/2= -1/1.5x 100 = -66.67 %

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

= 120%/-66.67%= -1.79 = -1.8

For Price elasticity of demand, the sign is not included and the basis for elasticity is on the value itself . here we can conclude that the Price elasticity of demand for Dunkin donut is 1.8 and elastic because a fall in price led to an increase in amount being sold.

3 0

3 years ago