Help

PRIVATE USE ONLY ······················································································· Enoch Lau What is meant by harm pushover of contend? How can we measure the piece of cake of demand? why is an understanding of breeze of demand important to both occupancy firms and the government? Consumers in a market economy are influenced by various factors in deciding what to buy. One of these factors is impairment, and the rightfulness of demand that defines the typical relationship between price and total demanded states that consumers result demand more of a particular harvest-time at a lower price, and less(prenominal) at a higher price. However, the price elasticity of demand extends this and examines the extent of much(prenominal) spays in demand in relation to price. How much demand contracts or expands in response to a price change is of importance to businesses and governments, and hence methods such as the total expenditure method have been developed to test the price elasticity of demand at various price levels. The price elasticity of demand measures the responsiveness or sensitivity of the measure demanded of a particular product to changes in its price.

As a figure, the price elasticity of demand shows the percentage change in the quantity of a good demanded resulting from a 1% increase in its price. Demand can hence be said to be comparatively elastic, relatively inelastic or unitary elastic. We sack out that for most goods, a fall in price will cause an expansion in demand, but if that expansion in demand were proportionately greater than the fall in price, wherefore we would say that quantity demanded is very responsive to a price change; thus demand is said to be relatively elastic. The opposite situation, relatively inelastic demand, indicates that there has been a less than proportionate change in quantity demanded a imperfect response to price change. When the total amount spent remains unchanged, the proportionate change in quantity demanded is the same as the proportionate change... If you want to get a full essay, monastic order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!