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2 years ago

What are a list of items that the most price elastic demand

Business

1 answer:

Paul [167]2 years ago

4 0

Answer:

See below

Explanation:

Price elasticity of demand describes how responsive the product of a product is to changes in its price. The term elasticity originates from elastic, which means to stretch. A product is price elastic if a small change in price has a significant impact on its demand. Should the price increase by a small percentage, the demand decreases by a considerable difference.

The demand for some products does not react to changes in prices. A small percentage increase or decrease in price does not result in a big change in the quantity demand. Such products are said to be price inelastic.

Substitute goods or goods with close alternatives are the most price elastic. A small change in price will make consumers consider the other alternatives. Examples of price-elastic goods and services include transport services, furniture, motor vehicle, and professional services such as lawyers, doctors, and auditors.

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______ effect happens when the place a product was manufactured influences how consumers perceive the product.

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Effect happens when the place a product was manufactured influences how consumers perceive the product. Country of Origin

What benefits do consumer product firms derive by marketing internationally?

Competition with other companies can be maintained. Sales and profits can be enhanced. Life cycles of products can be extended.

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What is the viability and relevancy of insurance products sold to businesses and individuals ?

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2 years ago

By how much does the residual elasticity of demand facing a firm increase as the number of firms increases by one firm?

soldi70 [24.7K]

Answer:

Explanation:

By how much does the residual elasticity of demand facing a firm increase, as the number of firms in the market increases by one?

The residual elasticity of demand facing a firm, is the portion of market demand which is not met or supplied by other firms in the market. In other words, this is the demand curve of the firm, given the presence of other firms in the market.

Given that

- all the firms in this market sell identical products,

- have identical marginal costs,

- and produce the same amount of output;

We model the residual elasticity of demand for this firm as:

EDr = EDm - EDa

Where:

EDr = the residual elasticity of demand for this firm

EDm = market elasticity of demand

EDa = total elasticity of demand facing ALL other firms in the market.

If EDa = 4, and a new firm enters the market, it will become 5

Elasticity of demand is the degree of responsiveness of demand, to change in price of a commodity.

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3 years ago

Which economic utility increased when fast-food restaurants began accepting credit.

Alborosie

Answer:

Possession utility

Explanation:

Possession utility is the value consumers derive from purchasing a good and there is an option for them to make use of the good for the primary function it was made to perform or when it is possible to make use of the good in another way.

The possession utility of a product can increase when a customer is given a means of finance that affords him an immediate enjoyment of a commodity by paying little or no money for it.

Therefore, possession utility increased when fast-food restaurants began accepting credit.

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2 years ago

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What are a list of items that the most price elastic demand​

What are a list of items that the most price elastic demand