In economics, if a good is inelastic, then <u>its supply or demand is not sensitive to price changes.
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Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.
<h2>Further Explanation;
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- Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
- When the price of an inelastic good changes, its supply and demand is unaffected.
- Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.
<h3>Demand and supply in determination of market price
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- Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.
- One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
- Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.
- This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
- However, for <u>inelastic goods</u> such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.
Keywords; Inelastic goods, demand and supply, market price.
<h2>Learn more about:
</h2>
- Demand and supply; brainly.com/question/6749722
- Effect of supply and demand on market price: brainly.com/question/3522474
Level; High school
Subject: Business
Topic: Demand and supply
Sub-topic: Types of goods
Answer:The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?
Explanation:
8 lol just saying just saying I think it’s right
Answer: e. Design analysis.
Explanation: Value engineering is defined as a systematic, organized manner of providing necessary functions in a project at the lowest cost possible thus promoting the substitution of materials and methods with cheaper alternatives, without the loss of functionality. Design analysis is a form of value engineering wherein several possible designs of a product or method is prepared, with each product/method having similar features with varying levels of performance and costs. It can be applied to any type of design both tangible and intangible and as a process, it includes all information discovery, planning and communications. It is focused solely on the functions of various components and materials, rather than their physical attributes.
Answer:
management strategy
Explanation:
By improving the companies management strategy the the manager in trevor's company would be able to gain competitive advantages and also achieve the companies objectives with the required resources.
