The document discusses the importance and various uses of the concept of elasticity of demand. It lists 13 ways that elasticity of demand is important:
1) For businesspeople to determine pricing strategies
2) For monopolists setting prices
3) For finance ministers imposing taxes
4) Determining prices for joint products
5) Explaining economic paradoxes
6) Determining rewards for factors of production
7) Justifying public utilities being taken over by the state
8) Setting prices for public utilities
9) Determining terms of trade between countries
10) Setting foreign exchange rates
11) Implementing price control policies
12) Creating tariff policies
13) Determining tax incidence
try the ppt of Tata Mutual Fund on deflation which is posted on slideshare try it its and easy to understand this ppt is also mix of that ppt and 2 more
Exceptions to the Law of Demand
A normal demand curve falls downward from left to right. The basic feature of the demand curve is negative sloping
But sometimes the demand curve may slope upward from left to right. In other words, it may have a positively inclined curve.
These phenomena may due to:
Giffen paradox
Veblen or Demonstration effect.
Ignorance.
Speculative Effect.
Fear of Shortage.
Necessaries
Brand Loyalty
Festival, Marriage etc.
Students should be able to:
Understand the characteristics of this market structure with particular reference to the interdependence of firms
Explain the behaviour of firms in this market structure
Explain reasons for collusive and non-collusive behaviour
Evaluate the reasons why firms may wish to pursue both overt and tacit collusion
Economics, Law of Demand, Determinants of Demand, increase and Decrease in Demand, Extension and Contraction in Demand, Exception of Demand, Assumptions of Demand
A market can be defined as a group of firms willing and able to sell a similar product or service to the same potential buyers.
Imperfect competition covers all situations where there is neither pure competition nor pure monopoly.
Perfect competition and pure monopoly are very unlikely to be found in the real world.
In the real world, it is the imperfect competition lying between perfect competition and pure monopoly.
The fundamental distinguishing characteristic of imperfect competition is that average revenue curve slopes downwards throughout its length, but it slopes downwards at different rates in different categories of imperfect competition.
Monopoly refers to the market situation where there is a
Single seller selling a product which has no close substitutes.
Monopolies are characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the existence of a high monopoly price well above the firm's marginal cost that leads to a high monopoly profit
The word “oligopoly” comes from the Greek “oligos” meaning "little or small” and “polein” meaning “to sell.” When “oligos” is used in the plural, it means “few” ,few firms or few sellers.
DEFINATION:
Oligopoly is that form of market where there are few firms and there is natural interdependence among the firms regarding price and output policy.
try the ppt of Tata Mutual Fund on deflation which is posted on slideshare try it its and easy to understand this ppt is also mix of that ppt and 2 more
Exceptions to the Law of Demand
A normal demand curve falls downward from left to right. The basic feature of the demand curve is negative sloping
But sometimes the demand curve may slope upward from left to right. In other words, it may have a positively inclined curve.
These phenomena may due to:
Giffen paradox
Veblen or Demonstration effect.
Ignorance.
Speculative Effect.
Fear of Shortage.
Necessaries
Brand Loyalty
Festival, Marriage etc.
Students should be able to:
Understand the characteristics of this market structure with particular reference to the interdependence of firms
Explain the behaviour of firms in this market structure
Explain reasons for collusive and non-collusive behaviour
Evaluate the reasons why firms may wish to pursue both overt and tacit collusion
Economics, Law of Demand, Determinants of Demand, increase and Decrease in Demand, Extension and Contraction in Demand, Exception of Demand, Assumptions of Demand
A market can be defined as a group of firms willing and able to sell a similar product or service to the same potential buyers.
Imperfect competition covers all situations where there is neither pure competition nor pure monopoly.
Perfect competition and pure monopoly are very unlikely to be found in the real world.
In the real world, it is the imperfect competition lying between perfect competition and pure monopoly.
The fundamental distinguishing characteristic of imperfect competition is that average revenue curve slopes downwards throughout its length, but it slopes downwards at different rates in different categories of imperfect competition.
Monopoly refers to the market situation where there is a
Single seller selling a product which has no close substitutes.
Monopolies are characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the existence of a high monopoly price well above the firm's marginal cost that leads to a high monopoly profit
The word “oligopoly” comes from the Greek “oligos” meaning "little or small” and “polein” meaning “to sell.” When “oligos” is used in the plural, it means “few” ,few firms or few sellers.
DEFINATION:
Oligopoly is that form of market where there are few firms and there is natural interdependence among the firms regarding price and output policy.
Unveiling the Dynamics of Elasticity of Demand in Economics.pdfEnterprise Wired
This comprehensive guide delves into the intricacies of elasticity of demand, examining its definition, types, determinants, and real-world applications, shedding light on its significance in economic decision-making.
An Individual project given in order to complete the module named Macro Economics which expresses analysis of the trends of inflation rates of Sri Lanka during recent years.
Running head Economic Analysis of Business ProposalEconomic A.docxcharisellington63520
Running head: Economic Analysis of Business Proposal
Economic Analysis of Business Proposal 7
Introduction
The onus of this economic analysis paper centers around both the “Thomas Money Service Inc.” and “Will Bury’s Price Elasticity” scenarios that collectively constitute a monopolist market structure. (Crane, 2014) wrote that the market conditions and information concerning the pricing strategies, quantity to supply to the entire market, product differentiation, as well as patenting of the innovations dominate these scenarios. As a result of this, many dilemmas emerge under monopolistic markets given that the commodities produced are not complete substitutes rather close substitutes to each other. A big number of producers and product differentiation about the pricing strategies and the price elasticity of demand are the material factors that this manuscript is tasked to discuss.
Overview of the two scenarios
For the case of “Thomas Money Service Inc.”, the financing institution started providing credit lending facilities back in the year 1940 as a consumer finance firm.Between 1940 and 1945, the company increased its activities from issuing small loans to households to offering business loans, mortgages, and business acquisition financing.Early in the year 1946, a lucrative opportunity emerged of providing equipment financing supplementing the high market demand for forestry and equipment.The year 1951 was a year of opportunities where the company bought an equipment manufacturing firm. Consequently, the company suspended the funding of other equipment brands due to the increased manufacturing, selling, and financing its brand of forestry and building equipment.
On the other hand, Will Bury started as a mere worker at the High Tech Digital Industries, where he gathered necessary innovations skills to start his music and digital business.In the garage operation, Will increased his knowledge and entrepreneurship culture to prompt the decision of starting the digital book enterprise that he invented. Will Burry was faced with many dilemmas of how to ascertain his technological application, which kind of clientele to serve, the way of distribution of the services to the people, the demand for books, as well as the pricing strategies.
Monopolistic competition markets structure
As per the two scenarios of Will Bury and Thomas Money Services, it is crystal clear that they are examples of monopolistic market structures. This form of a market is a blend of the monopoly and perfect competition and has been called monopolistic competition or competing monopolists as stated by (Hushke, 2010). In the real world, there is neither absolute monopoly that is an absence of competition, nor perfect competition, but monopolistic competition. The products are not complete substitutes for one another, but they are close substitutes.
With respect to monopolistic competition, the number of dealers (buyers and sellers) is not large, at any rate not as lar.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
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A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
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Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
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US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
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Telegram: @Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
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#pinetwork
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
3. introduction
The concept of elasticity of demand plays a crucial role in the
pricing decisions of the business firms and the Government when
it regulates prices. The concept of elasticity is also important in
judging the effect of devaluation of a currency on its export
earnings.
It has also a great use in fiscal policy because the Finance Minister
has to keep in view the elasticity of demand when it considers
imposing taxes on various commodities. We shall explain below the
various uses, applications and importance of the elasticity of
demand.
4. Importance of the Study of Elasticity of Demand
1. For the Businessman.
2. For Monopolist.
3. For Finance Minister.
4. For Determination of Prices of Joint Products.
5. For Explaining the Paradox of Poverty in the Midst of Plenty.
6. For Determining Reward of Factors of Production.
7. For Taking over Public Utility Services.
8. For Pricing Policy for Public Utilities.
9. Terms of Trade between two countries.
10. Determination of Rates of Foreign exchange.
11. For Price Control Policy.
12. For Tariff Policy.
13. Incidence of Taxation.
5. 1.For the Businessman
A knowledge of the nature of the elasticity of demand for his
products will help a businessman to decide whether he should
cut his price in a particular case. In general , for items where
the demand is elastic , it will pay him to charge relatively low
prices , while on those whose demand is inelastic , he would
be better off with a higher price.
7. 2.For Monopolist
The price elasticity concept is of much significance ,
particularly to a monopolist who fixes his own prices for his
goods. If demand for his goods is inelastic , it will be
profitable for him to charge a higher price and sell a smaller
output. If demand is elastic , it will be profitable to change a
lower price and increase the sales.
9. 3.For Finance Minister
Whenever the Finance Minister contemplates the introduction
of a fresh levy upon certain commodities or the raising of the
tax-rates on existing tax objects with a view to getting more
of revenue for the state , he makes an intensive study of the
elasticity of demand for the commodities in question. The
Finance Minister often taxes those commodities whose
demand is price-inelastic. This increases taxation revenue.
10. 4.For Determination of Prices of Joint
Products
The concept of the elasticity of demand is of much use in the
pricing of joint products , like cotton and cotton seeds , wool
and mutton , wheat and straw , etc. here it is not possible to
ascertain separate marginal cost of joint product. The
transport authorities fix their rates according to the principle
‘charge what the traffic will bear’.
11. 5.For Explaining the Paradox of Poverty in
the Midst of Plenty
The concept of elasticity of demand explains the paradox of
poverty in the midst of plenty. For example , if there is a
bumper crop of wheat it may spell disaster to farmers ,
instead of causing prosperity , if the demand for wheat is
inelastic. A fall in price of wheat due to an increase in supply
will reduce the incomes of farmers.
12. 6.For Determining Reward of Factors of
Production
Elasticity of demand is equally important in determining the
rewards of the various factors of production in the country.
For instance , if the demand for workers is elastic , efforts of
trade unions to raise the wages of the workers will meet with
failure. Factors of production which have a more elastic
demand have to accept a smaller reward ; and factors which
have an inelastic demand can command a bigger reward.
13. 7.For Taking over Public Utility Services
State takeover of public utility services can also be explained
with the help of elasticity of demand. Demand for public
utilities such as electricity and water supply , posts and
telegraphs , public transportation , etc. , is generally inelastic
in nature. For example , in Bombay City , the bus service in
suburban areas was privately run. It was later taken over by
the Municipal Corporation of Greater Bombay.
14. 8.For Pricing Policy for Public Utilities
Price elasticity is also influential in determining a price policy
by public utility undertakings , like electric supply
undertakings , railways , etc. such undertakings determine
their rates for different uses on the basis of the elasticity of
demand and try to cover the losses from one group of users
out of the gains reaped from the other groups.
15. 9.Terms of Trade Between two Countries
In the international trade , the price elasticity of demand is
helpful in ascertaining the ‘terms of trade’. If exports have
inelastic demand , a higher price can be charged from
abroad. Similarly , if imported goods have elastic demand in
the internal market , a lower price is to be fixed. Both these
enable a country to have favourable ‘terms of trade’ in
respect of international trade.
16. 10.Determination of Rates of Foreign
Exchange
For determining the rates of foreign exchange for the home
currency , the government has to take into account the
elasticity of demand for its exports and imports. This will
enable the government to know the likely effects of
devaluation or revaluation of its currency , in terms of
foreign currencies.
17. 11.For Price Control Policy
In underdeveloped countries like India , the price
control policy can be pursued only after estimating the
price elasticity of demand of strategic commodities.
Price control is exercised generally in case of
commodities having lower degrees of elasticities or
inelastic demand.
18. 12.For Tariff Policy
Imposition of tariff raises the prices of domestic goods.
The extent to which the internal price rise depends on
the elasticity of demand of the protected goods. On the
contrary , if the demand is less elastic , people will have
to bear the burden of higher prices as a result of the
tariff policy.
19. 13.Incidence of Taxation
Incidence of tax lies on the person who ultimately pays
the tax. The incidence is on the buyer , if demand is
perfectly inelastic. He will go on buying as much as
before despite the price rise. Principle of justice in
taxation is thus based on elasticity of demand.