Explain the concept of Elasticity of demand. How is it measured? What can it tell a...

Explain the concept of Elasticity of demand. How is it measured? What can it tell a marketing professional about how to market a product or service? Give some examples of products or services for which elasticity would be high. Give some examples where elasticity would be low.

Solutions

Expert Solution

The elasticity demand explains or shows changes in the how much changes in the price results quantity demanded.In technical words, it shows responsiveness and sensitiveness of demand to the price.

There are four types of method to calculate elasticity demand as follows

The percentage method
The point method
The arc method
Total outlay method

The concept of elastic demand has greater applications in economics filed example while deciding the price of the product firm has to give importance to the elasticity demand for their product.

Example if demand for the product is high firm has to set low price in order to sell more and increase market share.likewise demand for less elastic it is profitable for the firm to fix the price high

Example oIncase necessary goods demand for goods is less elastic example Salt, salt is used in cooking if fall or rise in the price does not affect the demand.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

explain the concept of elasticity. what are the determinants of elasticity of demand ? why is...

explain the concept of elasticity. what are the determinants of elasticity of demand ? why is the concept of elasticity so important in economics ? 200 word - answers with your own words

please explain the following: a) briefly explain elasticity of demand and how it is measured b)...

please explain the following: a) briefly explain elasticity of demand and how it is measured b) Explain with diagrams and relevant examples, THREE (3) categories of price elasticity of demand. c) Explain any THREE (3) of price elasticity of demand.. please provide references

3.1 Briefly explain price elasticity of demand and how it is measured. 3.2 Explain with diagrams...

3.1 Briefly explain price elasticity of demand and how it is measured. 3.2 Explain with diagrams and relevant examples, THREE (3) categories of price elasticity of demand. 3.3 Explain any THREE (3) determinants of price elasticity of demand.

1.Briefly explain price elasticity of demand and how it is measured. (1)Explain with diagrams and relevant...

1.Briefly explain price elasticity of demand and how it is measured. (1)Explain with diagrams and relevant examples,three catagories of price elasticity demand. (11)Explain any three deterninats of price elasticity demand.

3.1 Briefly explain price elasticity of demand and how it is measured. (5) 3.2 Explain any...

3.1 Briefly explain price elasticity of demand and how it is measured. (5) 3.2 Explain any THREE (3) determinants of price elasticity of demand. (6

What can you tell about the price elasticity of demand in each of the cases below?...

What can you tell about the price elasticity of demand in each of the cases below? a. (0.5 points) The new cannabis business is very competitive. One seller states they would lose a quarter of their customers if they raised price by only 5%. b. (0.5 points) John has a very strict routine. He purchases exactly one coffee every morning, no matter what. c. (0.5 points) Laura runs a salon and has seen her revenues increase after she raised the...

Explain the concept of income elasticity of demand. How is it used to identify normal goods,...

Explain the concept of income elasticity of demand. How is it used to identify normal goods, luxuries, necessities, and inferior goods? Be as specific and logical as possible.

Topic 1: Price elasticity of demand is an important concept. With appropriate examples, explain how this...

Topic 1: Price elasticity of demand is an important concept. With appropriate examples, explain how this concept is related to total revenue. (Hint: When providing example, select a product whose demand may be relatively elastic; therefore, lowering its price may lead to increase in total revenue. This will allow other students to choose a different example.) Topic 2: Discuss why a firm may decide to continue producing a good even if its price may be less than the average total...

Topic 1: Price elasticity of demand is an important concept. With appropriate examples, explain how this...

Topic 1: Price elasticity of demand is an important concept. With appropriate examples, explain how this concept is related to total revenue. (Hint: When providing example, select a product whose demand may be relatively elastic; therefore, lowering its price may lead to increase in total revenue. This will allow other students to choose a different example.) (Please post answer in written form and not chart form)

Explain how the concept of price elasticity of demand applies to hospitality operations. (minimum of 300...

Explain how the concept of price elasticity of demand applies to hospitality operations. (minimum of 300 words)

Subjects