The document discusses the concept of elasticity in economics, which is a measure of how responsive quantity demanded or supplied is to changes in price. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Demand can be elastic, inelastic, or unit elastic depending on how much it responds to price changes. The determinants of price elasticity and how to compute it using percentage changes are explained. The document also discusses other types of elasticities including income and cross-price elasticity. It then defines price elasticity of supply and explores how perfectly inelastic, inelastic, unit elastic and perfectly elastic supply curves can look. Factors that impact supply elasticity are discussed along
This document discusses price elasticity of demand and supply. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Price elasticity measures how responsive consumers are to price changes. Demand is more elastic when good substitutes exist, when the good is a small part of the budget, or over longer periods of time as consumers can adjust. Price elasticity of supply is defined similarly, measuring producer responsiveness to price changes. Supply becomes more elastic over longer periods as producers can adjust production. The document also discusses income elasticity of demand and cross-price elasticity.
Elasticity measures how responsive buyers and sellers are to changes in market conditions like price and income. Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price. Elasticity analysis can be used to determine how changes in supply or demand will impact market equilibrium and total revenue.
This document discusses the concept of elasticity in economics. It defines price elasticity of demand as a measure of how much quantity demanded responds to changes in price. Price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price. Demand can be elastic, inelastic, or unitary elastic depending on how much quantity changes relative to price changes. Income elasticity of demand and price elasticity of supply are also defined and calculated. Supply is generally more elastic in the long run than short run.
This document discusses elasticity, which measures how much buyers and sellers respond to changes in market conditions like price. It defines price elasticity of demand as the percentage change in quantity demanded given a percentage change in price. Price elasticity of supply is defined similarly for quantity supplied. The document explores factors that determine elasticity and how to compute it. It also examines how elasticity affects total revenue and how the elasticity concept can be applied to analyze markets.
This document defines elasticity and discusses different types of elasticity, including:
- Price elasticity of demand measures responsiveness of quantity demanded to price changes. It can be elastic, inelastic, or unitary.
- Income elasticity of demand measures responsiveness of quantity demanded to changes in income. Goods can be normal, inferior, luxury, or necessity.
- Cross elasticity of demand measures responsiveness of demand for one good to price changes of other goods.
- Price elasticity of supply measures responsiveness of quantity supplied to price changes. Supply can be elastic, inelastic, or unitary. Determinants include time period and ability to adjust inputs.
This document discusses elasticity and its applications. It defines price elasticity of demand and supply as the percentage change in quantity demanded or supplied given a percentage change in price. Demand can be elastic, inelastic, or unit elastic depending on how much quantity changes with price. The document also discusses factors that determine elasticity, how to compute elasticity, and how shifts in supply or demand impact equilibrium price and quantity in a market.
Supply, Demand, and Government PoliciesChris Thomas
The document discusses how government policies like price controls, taxes, and minimum wages can impact markets. It explains that price ceilings set a maximum price and can cause shortages, while price floors set a minimum price and can cause surpluses. Taxes reduce market activity and buyers and sellers share the tax burden depending on supply and demand elasticities. The minimum wage is an example of a price floor that can result in unemployment.
This document discusses the concepts of price elasticity of demand and supply. It defines price elasticity of demand as a measure of how much quantity demanded responds to changes in price. Demand can be elastic, inelastic, or unit elastic depending on if the percentage change in quantity is greater than, less than, or equal to the percentage change in price. Factors like availability of substitutes and necessity of a good influence elasticity. Price elasticity of supply is defined similarly for quantity supplied responses to price changes. Production possibilities and storage abilities impact supply elasticity. Formulas are provided to calculate elasticities from percentage changes. Total revenue tests and expenditure tests can also indicate elasticity.
This document discusses price elasticity of demand and supply. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Price elasticity measures how responsive consumers are to price changes. Demand is more elastic when good substitutes exist, when the good is a small part of the budget, or over longer periods of time as consumers can adjust. Price elasticity of supply is defined similarly, measuring producer responsiveness to price changes. Supply becomes more elastic over longer periods as producers can adjust production. The document also discusses income elasticity of demand and cross-price elasticity.
Elasticity measures how responsive buyers and sellers are to changes in market conditions like price and income. Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price. Elasticity analysis can be used to determine how changes in supply or demand will impact market equilibrium and total revenue.
This document discusses the concept of elasticity in economics. It defines price elasticity of demand as a measure of how much quantity demanded responds to changes in price. Price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price. Demand can be elastic, inelastic, or unitary elastic depending on how much quantity changes relative to price changes. Income elasticity of demand and price elasticity of supply are also defined and calculated. Supply is generally more elastic in the long run than short run.
This document discusses elasticity, which measures how much buyers and sellers respond to changes in market conditions like price. It defines price elasticity of demand as the percentage change in quantity demanded given a percentage change in price. Price elasticity of supply is defined similarly for quantity supplied. The document explores factors that determine elasticity and how to compute it. It also examines how elasticity affects total revenue and how the elasticity concept can be applied to analyze markets.
This document defines elasticity and discusses different types of elasticity, including:
- Price elasticity of demand measures responsiveness of quantity demanded to price changes. It can be elastic, inelastic, or unitary.
- Income elasticity of demand measures responsiveness of quantity demanded to changes in income. Goods can be normal, inferior, luxury, or necessity.
- Cross elasticity of demand measures responsiveness of demand for one good to price changes of other goods.
- Price elasticity of supply measures responsiveness of quantity supplied to price changes. Supply can be elastic, inelastic, or unitary. Determinants include time period and ability to adjust inputs.
This document discusses elasticity and its applications. It defines price elasticity of demand and supply as the percentage change in quantity demanded or supplied given a percentage change in price. Demand can be elastic, inelastic, or unit elastic depending on how much quantity changes with price. The document also discusses factors that determine elasticity, how to compute elasticity, and how shifts in supply or demand impact equilibrium price and quantity in a market.
Supply, Demand, and Government PoliciesChris Thomas
The document discusses how government policies like price controls, taxes, and minimum wages can impact markets. It explains that price ceilings set a maximum price and can cause shortages, while price floors set a minimum price and can cause surpluses. Taxes reduce market activity and buyers and sellers share the tax burden depending on supply and demand elasticities. The minimum wage is an example of a price floor that can result in unemployment.
This document discusses the concepts of price elasticity of demand and supply. It defines price elasticity of demand as a measure of how much quantity demanded responds to changes in price. Demand can be elastic, inelastic, or unit elastic depending on if the percentage change in quantity is greater than, less than, or equal to the percentage change in price. Factors like availability of substitutes and necessity of a good influence elasticity. Price elasticity of supply is defined similarly for quantity supplied responses to price changes. Production possibilities and storage abilities impact supply elasticity. Formulas are provided to calculate elasticities from percentage changes. Total revenue tests and expenditure tests can also indicate elasticity.
Elasticity measures the responsiveness of quantity demanded or supplied to changes in factors like price. Price elasticity of demand measures how much quantity demanded changes with price changes. Demand can be elastic, inelastic, unit elastic, perfectly elastic, or perfectly inelastic depending on its elasticity value. Price elasticity of supply also measures how quantity supplied responds to price changes. Supply can be inelastic, unit elastic, elastic, perfectly inelastic, or perfectly elastic. Income elasticity measures responsiveness of demand to income changes.
The document defines economic systems and describes four main types: traditional, command, market, and mixed. It provides details on the key features and examples of each system. A traditional economy is based on customs and meets needs through activities like farming, hunting, and gathering. A command economy involves centralized government control over production and distribution. A theoretical market economy has no government intervention. Most modern economies are mixed, combining market forces and some government role in areas like setting standards. The document concludes with an exercise matching terms to economic systems and assigning homework on analyzing a specific system.
This document discusses the concept of elasticity and its applications. It defines key terms like price elasticity of demand, price elasticity of supply, and total revenue. It examines how total revenue is affected by elasticity and provides examples to illustrate applications, including how good harvests can hurt farmers, why OPEC struggled to keep oil prices high, and how drug interdiction may increase short-run crime but decrease it long-run. The key points are that elasticity determines how quantities respond to price changes, and it is important for understanding how policies impact markets and different groups within them.
Demand,supply,Demand and supply,equilibrium between demand and supply Anand Nandani
The document discusses concepts related to demand and supply, including:
1. Demand curves show the relationship between price and quantity demanded, while supply curves show the relationship between price and quantity supplied.
2. The intersection of the demand and supply curves determines the equilibrium price and quantity in a market.
3. Elasticity measures the responsiveness of demand or supply to various factors like price, income, and price of related goods. It helps to determine how demand and supply respond to changes in the market.
Elasticity of Supply
The elasticity of supply can be defined as “the degree (measure) of responsiveness in quantity supplied to a change in price”.
It is also defined as the percentage change in quantity supplied divided by percentage change in price.
It represents the rate of change in quantity supplied due to a change in its own price.
Elasticity of supply can be defined as “the degree (measure) of responsiveness in quantity supplied to a change in price”.
It is also defined as the percentage change in quantity supplied divided by percentage change in price.
It represents the rate of change in quantity supplied due to a change in it’s own price.
Demand and Supply Analysis (Economics) Lecture NotesFellowBuddy.com
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We connect Students who have an understanding of course material with Students who need help.
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This document provides an overview of market equilibrium and how it is impacted by shifts in supply and demand. It defines key economic concepts such as markets, demand and supply curves, equilibrium price and quantity, surplus and shortage. It then explains how equilibrium is impacted by changes in demand and supply, both independently and simultaneously. Special cases involving perfectly inelastic or elastic demand and supply are covered. The document also discusses consumer surplus, producer surplus, total surplus, and how government intervention through price controls can impact equilibrium and result in deadweight loss. Market failures from externalities and ways to internalize externalities are explained.
1. The document discusses the theory of consumer choice and how it relates to budget constraints, preferences, and optimization.
2. It explains that a consumer's budget constraint depicts the combinations of goods they can afford based on their income and prices, while their preferences are represented by indifference curves.
3. The consumer will choose the combination of goods that puts them on the highest possible indifference curve that is also on or below their budget constraint, which is their optimal choice.
Ch 34 aggregate demand and aggregate supplyGale Pooley
Exam 4 will take place on Tuesday May 12 and Wednesday May 13. It will cover Chapters 34, 35, and 36. The final exam is scheduled for Saturday May 23 from 9:00AM to 11:30AM. The document provides an overview of key economic concepts related to aggregate demand, aggregate supply, the economic cycle, and the AD-AS model. It defines important terms and outlines factors that can cause the aggregate demand curve, short-run aggregate supply curve, and long-run aggregate supply curve to shift.
This document discusses price controls and their impact on supply and demand. It provides examples of price ceilings, which establish a legal maximum price, and price floors, which set a legal minimum price. Price ceilings can cause shortages by creating a surplus of demand over supply. Price floors can result in surpluses or unemployment by producing a surplus of supply over demand. The effects are illustrated using supply and demand graphs for rental housing prices under a price ceiling and wages for unskilled labor under a minimum wage price floor.
demand , law of demand and elasticity of demand with explanationArif mohd
This document discusses key concepts related to demand, including:
1. It defines demand as a desire backed by willingness and ability to purchase, and identifies three essential components of demand - desire, purchasing power, and willingness.
2. It explains demand analysis as determining factors affecting demand, measuring elasticity, forecasting demand, and increasing demand to efficiently allocate resources.
3. The law of demand states that quantity demanded is inversely related to price - as price increases, quantity demanded decreases, and vice versa.
4. Elasticity of demand measures responsiveness of quantity to price changes. There are three types: price, income, and cross elasticity. Price elasticity specifically measures the percentage change in
This document discusses the price elasticity of supply. It defines price elasticity of supply as the relationship between a change in quantity supplied and a change in price. It also provides the formula for calculating price elasticity of supply. Supply can be elastic, unit elastic, or inelastic depending on the coefficient. The document lists factors that affect price elasticity of supply, such as factor substitution possibilities, spare production capacity, stock levels, and time frames. Short-term supply may be more inelastic due to fixed factors, while long-run supply is more elastic.
The document discusses the market forces of supply and demand. It defines demand and supply, and explains how demand and supply curves are determined by various factors. The demand curve shows the relationship between price and quantity demanded, while the supply curve shows the relationship between price and quantity supplied. The market reaches equilibrium when quantity demanded equals quantity supplied at the market price.
Macro Economics_Chapter 7_Consumers,Producers and Efficiency Marketdjalex035
This chapter discusses consumer surplus, producer surplus, and market efficiency. It defines consumer surplus as the difference between what consumers are willing to pay and what they actually pay. Producer surplus is defined as the difference between what producers are paid and their costs. The market equilibrium maximizes the total surplus, which is the sum of consumer surplus and producer surplus. This allocation of resources through supply and demand is efficient because it maximizes the total benefits to both consumers and producers.
The Market Of Supply and Demand - EconomicsFaHaD .H. NooR
- Supply and demand determine market equilibrium price and quantity in competitive markets. The demand curve shows the relationship between price and quantity demanded, while the supply curve shows the relationship between price and quantity supplied.
- Equilibrium occurs where the supply and demand curves intersect, with price and quantity at the equilibrium point balancing the quantity suppliers are willing to offer and buyers are willing to purchase.
- Changes in supply or demand shift the curves, impacting equilibrium price and quantity. A demand increase raises price and quantity while a supply decrease also raises price but lowers quantity.
Macroeconomics_Elasticity and its Applicationsdjalex035
This chapter discusses elasticity, which measures how responsive buyers and sellers are to changes in price. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Factors that make demand more elastic include availability of substitutes, whether a good is a necessity or luxury, how broadly the market is defined, and the time period considered. Price elasticity of supply is defined similarly for quantity supplied. Factors that make supply more elastic include the ability to change production and longer time periods. The chapter examines how elasticity relates to total revenue and applies elasticity concepts to different markets.
Micro - Economics: Demand
Starting with the types of Economies, the presentation will take you to Demand, the demand schedule and curves, determinants & factors of demand.
This document discusses the costs of production for firms. It defines different types of costs including fixed costs, variable costs, total costs, average costs and marginal costs. It explains how costs are related to a firm's production function and how cost curves like total cost curves, average cost curves and marginal cost curves are shaped. It also distinguishes between costs in the short run versus long run.
The document provides an overview of supply and demand fundamentals. It defines key terms like quantity demanded, demand curve, quantity supplied, and supply curve. It explains how supply and demand are determined by price and how shifts can occur due to non-price factors. Examples of demand shifters include income, prices of related goods, tastes and preferences. Supply shifters include input prices, technology changes, and number of sellers. The document uses graphs and examples to illustrate concepts of supply, demand, and market equilibrium.
The document discusses the concepts of price elasticity of demand and supply. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Price elasticity of supply is defined similarly as the percentage change in quantity supplied divided by the percentage change in price. The document provides examples of different types of demand and supply curves based on their elasticities, and discusses how elasticity can be used to analyze the effects of changes in supply, demand, price, and total revenue in a market.
05_4E - Elasticity and Its Application.pptLunaLedezma3
- Elasticity is a measure of how responsive quantities of goods are to changes in price or other economic factors like income.
- The price elasticity of demand measures the responsiveness of quantity demanded to a change in price, while the price elasticity of supply measures the responsiveness of quantity supplied.
- Elasticities are calculated as the percentage change in quantity divided by the percentage change in the determining factor, such as price. They indicate whether demand or supply is elastic, inelastic, or unit elastic.
Elasticity measures the responsiveness of quantity demanded or supplied to changes in factors like price. Price elasticity of demand measures how much quantity demanded changes with price changes. Demand can be elastic, inelastic, unit elastic, perfectly elastic, or perfectly inelastic depending on its elasticity value. Price elasticity of supply also measures how quantity supplied responds to price changes. Supply can be inelastic, unit elastic, elastic, perfectly inelastic, or perfectly elastic. Income elasticity measures responsiveness of demand to income changes.
The document defines economic systems and describes four main types: traditional, command, market, and mixed. It provides details on the key features and examples of each system. A traditional economy is based on customs and meets needs through activities like farming, hunting, and gathering. A command economy involves centralized government control over production and distribution. A theoretical market economy has no government intervention. Most modern economies are mixed, combining market forces and some government role in areas like setting standards. The document concludes with an exercise matching terms to economic systems and assigning homework on analyzing a specific system.
This document discusses the concept of elasticity and its applications. It defines key terms like price elasticity of demand, price elasticity of supply, and total revenue. It examines how total revenue is affected by elasticity and provides examples to illustrate applications, including how good harvests can hurt farmers, why OPEC struggled to keep oil prices high, and how drug interdiction may increase short-run crime but decrease it long-run. The key points are that elasticity determines how quantities respond to price changes, and it is important for understanding how policies impact markets and different groups within them.
Demand,supply,Demand and supply,equilibrium between demand and supply Anand Nandani
The document discusses concepts related to demand and supply, including:
1. Demand curves show the relationship between price and quantity demanded, while supply curves show the relationship between price and quantity supplied.
2. The intersection of the demand and supply curves determines the equilibrium price and quantity in a market.
3. Elasticity measures the responsiveness of demand or supply to various factors like price, income, and price of related goods. It helps to determine how demand and supply respond to changes in the market.
Elasticity of Supply
The elasticity of supply can be defined as “the degree (measure) of responsiveness in quantity supplied to a change in price”.
It is also defined as the percentage change in quantity supplied divided by percentage change in price.
It represents the rate of change in quantity supplied due to a change in its own price.
Elasticity of supply can be defined as “the degree (measure) of responsiveness in quantity supplied to a change in price”.
It is also defined as the percentage change in quantity supplied divided by percentage change in price.
It represents the rate of change in quantity supplied due to a change in it’s own price.
Demand and Supply Analysis (Economics) Lecture NotesFellowBuddy.com
FellowBuddy.com is an innovative platform that brings students together to share notes, exam papers, study guides, project reports and presentation for upcoming exams.
We connect Students who have an understanding of course material with Students who need help.
Benefits:-
# Students can catch up on notes they missed because of an absence.
# Underachievers can find peer developed notes that break down lecture and study material in a way that they can understand
# Students can earn better grades, save time and study effectively
Our Vision & Mission – Simplifying Students Life
Our Belief – “The great breakthrough in your life comes when you realize it, that you can learn anything you need to learn; to accomplish any goal that you have set for yourself. This means there are no limits on what you can be, have or do.”
Like Us - https://www.facebook.com/FellowBuddycom
This document provides an overview of market equilibrium and how it is impacted by shifts in supply and demand. It defines key economic concepts such as markets, demand and supply curves, equilibrium price and quantity, surplus and shortage. It then explains how equilibrium is impacted by changes in demand and supply, both independently and simultaneously. Special cases involving perfectly inelastic or elastic demand and supply are covered. The document also discusses consumer surplus, producer surplus, total surplus, and how government intervention through price controls can impact equilibrium and result in deadweight loss. Market failures from externalities and ways to internalize externalities are explained.
1. The document discusses the theory of consumer choice and how it relates to budget constraints, preferences, and optimization.
2. It explains that a consumer's budget constraint depicts the combinations of goods they can afford based on their income and prices, while their preferences are represented by indifference curves.
3. The consumer will choose the combination of goods that puts them on the highest possible indifference curve that is also on or below their budget constraint, which is their optimal choice.
Ch 34 aggregate demand and aggregate supplyGale Pooley
Exam 4 will take place on Tuesday May 12 and Wednesday May 13. It will cover Chapters 34, 35, and 36. The final exam is scheduled for Saturday May 23 from 9:00AM to 11:30AM. The document provides an overview of key economic concepts related to aggregate demand, aggregate supply, the economic cycle, and the AD-AS model. It defines important terms and outlines factors that can cause the aggregate demand curve, short-run aggregate supply curve, and long-run aggregate supply curve to shift.
This document discusses price controls and their impact on supply and demand. It provides examples of price ceilings, which establish a legal maximum price, and price floors, which set a legal minimum price. Price ceilings can cause shortages by creating a surplus of demand over supply. Price floors can result in surpluses or unemployment by producing a surplus of supply over demand. The effects are illustrated using supply and demand graphs for rental housing prices under a price ceiling and wages for unskilled labor under a minimum wage price floor.
demand , law of demand and elasticity of demand with explanationArif mohd
This document discusses key concepts related to demand, including:
1. It defines demand as a desire backed by willingness and ability to purchase, and identifies three essential components of demand - desire, purchasing power, and willingness.
2. It explains demand analysis as determining factors affecting demand, measuring elasticity, forecasting demand, and increasing demand to efficiently allocate resources.
3. The law of demand states that quantity demanded is inversely related to price - as price increases, quantity demanded decreases, and vice versa.
4. Elasticity of demand measures responsiveness of quantity to price changes. There are three types: price, income, and cross elasticity. Price elasticity specifically measures the percentage change in
This document discusses the price elasticity of supply. It defines price elasticity of supply as the relationship between a change in quantity supplied and a change in price. It also provides the formula for calculating price elasticity of supply. Supply can be elastic, unit elastic, or inelastic depending on the coefficient. The document lists factors that affect price elasticity of supply, such as factor substitution possibilities, spare production capacity, stock levels, and time frames. Short-term supply may be more inelastic due to fixed factors, while long-run supply is more elastic.
The document discusses the market forces of supply and demand. It defines demand and supply, and explains how demand and supply curves are determined by various factors. The demand curve shows the relationship between price and quantity demanded, while the supply curve shows the relationship between price and quantity supplied. The market reaches equilibrium when quantity demanded equals quantity supplied at the market price.
Macro Economics_Chapter 7_Consumers,Producers and Efficiency Marketdjalex035
This chapter discusses consumer surplus, producer surplus, and market efficiency. It defines consumer surplus as the difference between what consumers are willing to pay and what they actually pay. Producer surplus is defined as the difference between what producers are paid and their costs. The market equilibrium maximizes the total surplus, which is the sum of consumer surplus and producer surplus. This allocation of resources through supply and demand is efficient because it maximizes the total benefits to both consumers and producers.
The Market Of Supply and Demand - EconomicsFaHaD .H. NooR
- Supply and demand determine market equilibrium price and quantity in competitive markets. The demand curve shows the relationship between price and quantity demanded, while the supply curve shows the relationship between price and quantity supplied.
- Equilibrium occurs where the supply and demand curves intersect, with price and quantity at the equilibrium point balancing the quantity suppliers are willing to offer and buyers are willing to purchase.
- Changes in supply or demand shift the curves, impacting equilibrium price and quantity. A demand increase raises price and quantity while a supply decrease also raises price but lowers quantity.
Macroeconomics_Elasticity and its Applicationsdjalex035
This chapter discusses elasticity, which measures how responsive buyers and sellers are to changes in price. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Factors that make demand more elastic include availability of substitutes, whether a good is a necessity or luxury, how broadly the market is defined, and the time period considered. Price elasticity of supply is defined similarly for quantity supplied. Factors that make supply more elastic include the ability to change production and longer time periods. The chapter examines how elasticity relates to total revenue and applies elasticity concepts to different markets.
Micro - Economics: Demand
Starting with the types of Economies, the presentation will take you to Demand, the demand schedule and curves, determinants & factors of demand.
This document discusses the costs of production for firms. It defines different types of costs including fixed costs, variable costs, total costs, average costs and marginal costs. It explains how costs are related to a firm's production function and how cost curves like total cost curves, average cost curves and marginal cost curves are shaped. It also distinguishes between costs in the short run versus long run.
The document provides an overview of supply and demand fundamentals. It defines key terms like quantity demanded, demand curve, quantity supplied, and supply curve. It explains how supply and demand are determined by price and how shifts can occur due to non-price factors. Examples of demand shifters include income, prices of related goods, tastes and preferences. Supply shifters include input prices, technology changes, and number of sellers. The document uses graphs and examples to illustrate concepts of supply, demand, and market equilibrium.
The document discusses the concepts of price elasticity of demand and supply. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Price elasticity of supply is defined similarly as the percentage change in quantity supplied divided by the percentage change in price. The document provides examples of different types of demand and supply curves based on their elasticities, and discusses how elasticity can be used to analyze the effects of changes in supply, demand, price, and total revenue in a market.
05_4E - Elasticity and Its Application.pptLunaLedezma3
- Elasticity is a measure of how responsive quantities of goods are to changes in price or other economic factors like income.
- The price elasticity of demand measures the responsiveness of quantity demanded to a change in price, while the price elasticity of supply measures the responsiveness of quantity supplied.
- Elasticities are calculated as the percentage change in quantity divided by the percentage change in the determining factor, such as price. They indicate whether demand or supply is elastic, inelastic, or unit elastic.
05_4E - Elasticity and Its Application.pptManisha367566
This document discusses the concepts of price elasticity of demand and supply. It defines price elasticity of demand as the percentage change in quantity demanded divided by the percentage change in price. Price elasticity of supply is defined similarly using quantity supplied. Different degrees of elasticity are explained including perfectly inelastic, inelastic, unit elastic, elastic, and perfectly elastic. Factors that determine elasticity, such as availability of substitutes and time horizon, are also discussed. Examples are provided to illustrate how elasticity impacts total revenue.
This document discusses elasticity and its applications. It defines price elasticity of demand and supply as the percentage change in quantity demanded or supplied given a percentage change in price. Demand can be elastic, inelastic, or unit elastic depending on how much quantity changes with price. The document also discusses factors that determine elasticity, how to compute elasticity, and how shifts in supply or demand impact equilibrium price and quantity in a market.
1. The document discusses the concept of elasticity and how it allows for more precise analysis of supply and demand.
2. It defines price elasticity of demand as the percentage change in quantity demanded given a percentage change in price. Factors like availability of substitutes, necessity vs luxury goods, and time horizon determine if demand is more or less elastic.
3. The price elasticity of supply measures how much quantity supplied responds to price changes. Inelastic supply responds less than elastic supply to price changes.
This document discusses elasticity, including the price elasticity of demand, income elasticity of demand, and price elasticity of supply. It defines these concepts, shows how to calculate them using percentage changes, and explores how they are related to total revenue and the slopes of demand and supply curves. Key determinants of elasticities are also examined, such as availability of substitutes, time horizon, and ability to change production. Diagrams are provided to illustrate different types of elasticities, including perfectly inelastic, inelastic, unit elastic, elastic, and perfectly elastic curves.
The document discusses different types of demand elasticities, including:
1. Price elasticity of demand, which measures the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity divided by the percentage change in price.
2. Income elasticity of demand, which measures the responsiveness of quantity demanded to a change in consumer income. It is calculated similarly to price elasticity.
3. Cross-price elasticity of demand, which measures the responsiveness of quantity demanded of one good to a change in the price of another good.
The elasticities depend on characteristics of the demand curve such as its slope and whether demand is inelastic, unit elastic,
1. A new, more productive variety of paddy increases supply, shifting the supply curve to the right.
2. With inelastic demand, this leads to a large fall in price and a proportionately smaller increase in quantity sold.
3. As a result, total revenue for farmers falls despite the increased supply.
This document discusses elasticity and its applications. It defines price elasticity of demand and supply as measures of how quantity demanded and supplied respond to price changes. Demand is generally more elastic with more substitutes, for luxuries, in more narrowly defined markets, or over longer time periods. Inelastic demand leads to increased total revenue from price rises, while elastic demand reduces total revenue. Income elasticity measures response to income changes. The document provides examples and formulas for calculating various elasticities.
Elasticity measures how responsive buyers and sellers are to changes in market conditions like price and income. Price elasticity of demand is calculated as the percentage change in quantity demanded over the percentage change in price. Demand is more elastic if there are substitutes, if the good is a luxury, or over a longer time period. Supply is also elastic over the long run as producers can adjust production. The discovery of a more productive wheat variety would shift the supply curve right, lowering the price and total farmer revenue if demand is inelastic.
Ch05-Elasticity and Its Application (4).pptxBitanyaTefera
This document defines and explains concepts related to elasticity, including:
- Price elasticity of demand measures how quantity demanded responds to price changes. It depends on availability of substitutes, market definition, budget share, necessity vs luxury, and time horizon.
- Total revenue increases with price increases for inelastic demand but decreases for elastic demand.
- Income elasticity measures response of quantity demanded to income changes. Goods are normal, inferior, or luxuries.
- Cross-price elasticity measures response of quantity demanded of one good to price changes of related goods, which can be substitutes or complements.
- Price elasticity of supply measures response of quantity supplied to price changes and depends on flexibility and mobility
Elasticity and its applications discusses key concepts of elasticity including:
1) Elasticity allows for more precise analysis of supply and demand by measuring how buyers and sellers respond to market changes.
2) Price elasticity of demand measures how quantity demanded responds to price changes, while price elasticity of supply measures how quantity supplied responds to price.
3) Demand is generally more elastic with more substitutes, for luxuries, over a longer time period, or in a more narrowly defined market. Inelastic demand leads to increased total revenue from a price rise while elastic demand decreases total revenue.
1) Elasticity is a measure of how much buyers and sellers respond to changes in market conditions like price.
2) Price elasticity of demand specifically measures how quantity demanded responds to changes in price. It is calculated as the percentage change in quantity divided by the percentage change in price.
3) Demand is more elastic when there are substitutes, for luxuries, over a longer time period, or in a more narrowly defined market. Inelastic demand means quantity does not strongly respond to price changes while elastic demand means quantity responds strongly.
The document outlines concepts related to elasticity of demand, including price elasticity of demand and income elasticity of demand. It discusses the different types of price elasticity, such as perfectly elastic, perfectly inelastic, relatively elastic, and relatively inelastic demand. It also covers determinants that impact price elasticity, like the number of substitutes, and whether a good is a necessity or luxury. The document defines income elasticity of demand and describes the different types, including positive, negative, and zero income elasticity.
Here are some ways the concept of price elasticity can be used in business decisions:
1. Maruti Udyog - If cross price elasticity of demand between Zen and Alto is high (i.e. they are close substitutes), then a price decrease for one model can help boost its sales by diverting demand from the other. This information helps in pricing strategies.
2. HP - Since laptops and printers are complements, a price decrease in one will lead to an increase in demand for both by virtue of complementarity. So bundle pricing or discounts on both can boost revenues.
3. Diamond factory - Since supply of skilled labor is fixed in short run, elasticity of supply of labor is low
This document defines four types of elasticity - price elasticity of demand, price elasticity of supply, income elasticity of demand, and cross elasticity of demand. It provides examples and explanations of each type. Key points include that elasticity measures the responsiveness of one variable to changes in another, and the factors that influence the elasticity of demand and supply such as availability of substitutes, time period, and whether a good is a necessity.
This document discusses four types of elasticity:
1. Price elasticity of demand measures how responsive quantity demanded is to price changes. It is calculated by dividing the percentage change in quantity by the percentage change in price.
2. Cross elasticity of demand measures how responsive the quantity demanded of one good is to price changes in another good. It shows if goods are substitutes or complements.
3. Income elasticity of demand measures how responsive quantity demanded is to changes in consumer income. It helps determine if a good is normal, inferior, or a luxury.
4. Price elasticity of supply measures how responsive quantity supplied is to price changes. It depends on factors like time available for producers to adjust supply
Elasticity is a measure of how responsive buyers and sellers are to changes in price and other market conditions. Price elasticity of demand specifically measures the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. Demand can be perfectly inelastic, inelastic, unit elastic, or elastic depending on whether the quantity changes less than, equal to, or more than the price change. Determinants of price elasticity include whether a good is a necessity vs luxury and the availability of substitutes. Income elasticity measures responsiveness of demand to income changes.
Here are the key effects of the $30 per room tax on buyers in the hotel market:
- The demand curve shifts left by $30, since buyers must now pay $30 more per room. This shifts D to D'.
- Equilibrium quantity falls from 100 rooms to 80 rooms, as the higher price reduces Q demanded.
- Price paid by buyers rises from $100 to $130 per room, as they must now pay the $30 tax on top of the original price.
- Price received by sellers falls from $100 to $100 - $30 = $70 per room, as they receive $30 less due to the tax.
- The incidence of the tax falls mostly on buyers,
This document discusses marketing mix and specifically place, which refers to how products are distributed from producers to consumers. It provides examples of different channels of distribution like manufacturers, wholesalers, retailers. It also discusses different types of retailers and methods of transportation. The key aspects covered are the importance of distribution and ensuring goods are available to customers where and when they want them.
This document discusses promotion and its aims. It identifies several forms of promotion including advertising, sales promotions, public relations, and personal selling. The document notes that promotion communicates between businesses and customers to inform people about products, where they are located, what they do, and to persuade customers to purchase products. Promotion aims to introduce new products, increase sales, improve company image, and create brand image. It also discusses factors to consider for promotion methods and activities to analyze different promotion options.
1. The document discusses the marketing mix and product development process. It explains the 4 Ps of the marketing mix - product, price, place, promotion.
2. It then covers various aspects of product development such as invention, innovation, research, prototyping, testing, and launch. A case study of James Dyson's product development is provided.
3. Finally, it discusses extending a product's lifecycle and having a product portfolio or mix to diversify a company's offerings. Strategies like new versions, new markets, and new uses can prolong a product's lifecycle.
Market
Research
Sales
Assistant
Advertising
Assistant
Production
Worker
Shareholders demand
job cuts to boost
efficiency
Organisation chart Delayering Voluntary redundancy Compulsory redundancy Natural wastage
The Efficiency Drive
Pressure from the shareholders to cut costs has forced the MD to re-structure the organisation. He has decided to de-layer the business.
Finance department: the credit control function and general accounts work have been merged into one more highly skilled job.
Production department: the workers have been given more responsibility for their work. They are given weekly targets and left to organise themselves. They are responsible for ensuring quality.
Marketing department: the
This document discusses different methods for motivating employees, including financial and non-financial rewards. It describes time rates and piece rates for wages, as well as salaries, bonuses, profit sharing, and other perks. The document also discusses ways for businesses to increase job satisfaction through job rotation, enlargement, enrichment, and teamwork. Finally, it outlines three leadership styles: autocratic, laissez-faire, and democratic.
This document discusses various sampling methods used in market research, including probability and non-probability sampling. Probability sampling methods like simple random sampling, systematic sampling, stratified sampling, and quota sampling allow researchers to calculate sampling error and make statistical inferences about the overall population. Non-probability methods like convenience sampling and snowball sampling provide easily accessible samples but results cannot be generalized to the population due to potential biases. The best sampling method depends on the research goals, population characteristics, and available resources.
This document provides an overview of the AS Language Paper 2 exam on writing. It consists of two sections, Section A on imaginative writing and Section B on writing for an audience. In Section A, candidates choose one of three descriptive or narrative writing prompts of 600-900 words. The document outlines six types of prompts focused on contrasts, descriptions, narrative openings/endings, and complete stories. It emphasizes creating atmosphere, characters, and effective writing techniques. Section B requires argumentative or discursive writing for a specified audience. Overall, the exam tests a candidate's ability to write imaginatively and persuasively.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
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Presented at The Global HR Summit, 6th June 2024
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How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
Key Components:
- Stakeholder Analysis
- Strategy Decomposition
- Adoption of Business Frameworks
- Goal Setting
- Initiatives and Action Plans
- KPIs and Performance Metrics
- Learning and Adaptation
- Alignment and Cascading of Scorecards
Benefits:
- Systematic strategy formulation and execution.
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Digital Marketing with a Focus on Sustainabilitysssourabhsharma
Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
How to Implement a Real Estate CRM SoftwareSalesTown
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Every industrial revolution has created a new set of categories and a new set of players.
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