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
Elasticity of Market Supply • Perfectly inelastic short run supply arises when industry's plant and equipment are so fully utilized that new plants should be built to ac

brife note on demand

Explain the difference between a stock and a flow.   A stock is something whose quantity is calculated at a point in time, whereas a flow measures the quantity of something ove

Q. Explain Capital Adequacy? Capital Adequacy: Capital adequacy rules are loose regulations which are imposed on private banks, in hope of ensuring that they have adequate inte

Assume that the market equilibrium rent for two-bedroom apartments in Santa Monica, California is $1500 per month and the quantity is 40,000 units. The city council of Santa Monica

contrast the longrun equilibrium positions of monopolistic competition firm and oligopoly

Illustrate the Economic Growth Up until 1800 growth rates of human populations were glacial. Population growth between 5000 B.C. and 1800 averaged less than one-tenth of a perc

Question 1: The price of the good X rises from $1.30 to $1.40. Calculate the price elasticity of demand by using the mid-point method. Question 2: How do you explain the answer


Returns to Scale in Carpet Industry *  The carpet industry has grown from the small industry to large industry with some large firms. *  Question - Can the growth be illu