How we can measure elasticity of demand, Managerial Economics

Assignment Help:

How we can measure Elasticity of demand

Though a manager requires an exact measure of this relationship for appropriate business decisions. Elasticity of demand is a measure that comes to the rescue of a manager here. It measures the responsiveness of demand to changes in prices along with changes in income. A manager can conclude almost exactly how the demand for his product will change when he changes his price or when his rivals alter prices of their products. He can also conclude how the demand for his product would change if incomes of his consumers go down orup. Elasticity of demand concept and its measurements are thus very significant tools of managerial decision making.  


Related Discussions:- How we can measure elasticity of demand

Functions of commercial banks, Functions of Commercial Banks In modern...

Functions of Commercial Banks In modern economy, commercial banks have the following functions: i.     They provide a safe deposit for money and other valuables. ii.

Economic theory, How does economic theory contribute to managerial decision...

How does economic theory contribute to managerial decisions?

Public expenditure, PUBLIC EXPENDITURE The accounts of the central gov...

PUBLIC EXPENDITURE The accounts of the central government are centered on two funds, the Consolidated Fund, which handles the revenues form taxation and other miscellaneous re

Time factor for determinants of demand, Q. Time Factor for Determinants of ...

Q. Time Factor for Determinants of Demand? Price-elasticity of demand depends moreover on the time that consumers take to adjust to a new price: longer the time taken, greater

Disposable income, Disposable Income This is the income which househol...

Disposable Income This is the income which households actually have available to spend or to save.  To calculate disposal income, which is indicated by Ya, the statistician mu

Loss at the point of equilibrium, Q. Loss at the point of equilibrium? ...

Q. Loss at the point of equilibrium? Losses: At the point of equilibrium i.e. E where MR = MC, firm produces OM amount of the output. To produce this output, firm incurs an a

Show the efficient method of production, Technically Efficient Method of Pr...

Technically Efficient Method of Production Let's suppose that commodity X is produced by two methods by employing capital and labour: Factor inputs Met

How we can measure elasticity of demand, How we can measure Elasticity of d...

How we can measure Elasticity of demand Though a manager requires an exact measure of this relationship for appropriate business decisions. Elasticity of demand is a measure t

Arc elasticity, Arc Elasticity Is the average elasticity between two g...

Arc Elasticity Is the average elasticity between two given points on the curve, i.e. Because of the negative relationship between price and quantity demanded, pr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd