Importance of cross elasticity, Managerial Economics

Importance of Cross Elasticity

Knowledge of cross elasticity is necessary when the government wants to impose a tariff on an imported commodity to protect a domestic industry.

Firms need to know the cross elasticity of their products and substitute products when contemplating price rises.

Firms also need to know the cross elasticity of the products and complements to plan their production.

Posted Date: 11/27/2012 6:40:02 AM | Location : United States







Related Discussions:- Importance of cross elasticity, Assignment Help, Ask Question on Importance of cross elasticity, Get Answer, Expert's Help, Importance of cross elasticity Discussions

Write discussion on Importance of cross elasticity
Your posts are moderated
Related Questions
Functions or Purposes of Taxation The functions of taxation can be discussed from the activities of the government it is meant to achieve. These are: a.     Raise reven

DIRECT TAXES A direct tax is one where the impact and incidence of the Tax is on the same person e.g. Income Tax, death or estate duty, corporation taxes and capital gains

a)      The production-possibilities curve is? b)      If there is a shortage in the provider of a product, we can conclude that its price: c)      An enhance in supply and a

Custodian of Member Banks Cash Reserves As bankers bank the central bank performs several function. It keeps the cash reserves of commercial banks in the economy and thus acts

In the national income analysis, investment refers to the value of than part of the aggregate output for any given time period which takes the form of construction of new structure

How Income level must remain constant - law of demand The law of demand operates only when income level of the buyer remains constant. If income rises when the price of commod


a) A reduce in supply and an enhance in demand will cause the equilibrium:   b)  Which of the following is most likely to cause a reduce in the present demand for  some product X

Borrowing Facilities If a country's currency is not convertible, it can borrow from countries whose currencies are convertible and use the convertible currencies to make its i

Define the term understanding oligopoly. Understanding Oligopoly; One possibility when the two companies will engage into collusion, Sellers engage into collusion while t