Define the price elasticity, Microeconomics

Price elasticity is used in economics to determine the changes in price of goods and services. It measures the change in price demanded and quality supplied.

Determinants of price elasticity include the various factors like necessities availabilities of the products in the market size time and the definition of the market.

Necessities include the daily used goods which are necessary and the quantity demanded of those products is high.

Availability here defines the substitutes availability whether the goods and if the goods are not available in the market then its substitute is available or not so that a buyer can give more money and pay for it if it fulfills the satisfaction level.

The market size depends on the basis of the products and the requirements.

The timing is also a factor because if the buyer has a sufficient time and amount then he will go for the good market but if not then he will just buy it for the cause of buying.

Posted Date: 3/6/2013 12:02:07 AM | Location : United States

Related Discussions:- Define the price elasticity, Assignment Help, Ask Question on Define the price elasticity, Get Answer, Expert's Help, Define the price elasticity Discussions

Write discussion on Define the price elasticity
Your posts are moderated
Related Questions
DETERMINATION OF EXCHANGE RATES: When we study the determinants of exchange rates, we must distinguish between long run determinants and short run because the determinants in

Explain the term Fordism Between approximately 1890 and 1930-or perhaps 1890 and 1950-a host of innovative technologies and business practices were adopted in the US. Europeans

Suppose that demand is downward sloping and supply upward sloping. Subsidies cause dead weight loss despite the fact that: 1)consumer surplus increases. 2)total surplus increases

Suppose that the total revenue function of a firm is given by TR(q) = 120q - 2q^2, where q is the level of output. Find the level of output q that will maximize the firm’s total re

Problem: i) The  inverse market demand curve for a Stackelberg leader and follower is given by  P = 10  - Q. If each has  a marginal cost of $4, what will be the equilibrium qu

The government decides to implement a new economic stimulus package targeted at American Farmers. The stimulus package gives every household a $300 prepaid credit card that may on

illustrate and explain the changing demand for big mac using indifference curve and budget line

what is oxidizing agent

So there''s an article about how a company wants to expand its services overseas to another country. I don''t get what will happen to the supply and demand curve. There has to be

1. Calculate the required reserve ratio. 2. Assume that Pam wants to borrow money to pay for a new car from Sharpeland Bank. a. What is the maximum amount that Sharpeland Ban