Elasticity, Microeconomics

not that long ago we experienced the excitement of thinking we would have cheaper online books and free music. these visions that we had of a free market utopia that blinded us to the fact there were immutable facts about economics and one of the standards is price elasticity, unfortunately some dwell on the potential still. Those early days of e-books held the much promise for such a short time. E-goods are returning to the price levels which we thought they had left behind, again the inevitable price elasticity. The question I have is this...why is it so certain that price elasticity will cause those prices to return to levels they were at instead of staying lower based on the new technology?
Posted Date: 6/22/2014 8:46:15 PM | Location : United States

Related Discussions:- Elasticity, Assignment Help, Ask Question on Elasticity, Get Answer, Expert's Help, Elasticity Discussions

Write discussion on Elasticity
Your posts are moderated
Related Questions
how do minimum unit costs change with changes in fixed cost?

Explain the micro and macro economic issues that can be represented on the PPC

Protection of infant firms: Infant industries are those firms, which are young. The absence of economies of scale to them makes their unit cost of production higher than older

Former communist economies which is, with varying degrees of enthusiasm and have embraced CAPITALISM.

Severe drought hit the coffee industry hard this year; as a result, more people are now switching to tea. The first table below shows the original supply and demand quantities in t

Problem 1: How can a manager of a supermarket maximise total revenue using various concepts of elasticity of demand? Use examples to illustrate. Problem 2: What are the

Facilitating Restructurings- rationale in era of globalisation: There has been some progress in the last few years in efforts to improve the framework for sovereign restructur

Banks: A company which accepts deposits and issues new loans. It makes profit by charging more interest for loans than it pays on deposits, and through several service charges. By

Time is a significant determinant of price elasticity.  If a price changes, it might take consumers a certain amount of time to discover alternative lifestyles or commodities to ac