Price elasticity of supply, Management Theories

Assignment Help:

You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very vital in determining prices and what products to provide, so you decide to investigate this concept.

You call your friend, an economics professor, and ask, "What is the price elasticity of demand? What determines it? What is elastic and inelastic demand?"

To really appreciate it, compute the following price elasticity's of demand:

  • The price of a laptop enhances by 20% and there is a 40% drop in the quantity demanded.
  • The price of a pack of cigarettes enhances by 10% and there is a 5% drop in the quantity demanded.
  • The price of water enhances by 15% but there is no drop in the quantity demanded

 

  • Why is elasticity an significant concept for a business? What if national income went up? How would that affect elasticity?
  • What is the price elasticity of supply? What verifies it?
  • Compute the following price elasticities of supply:
    • The price of a hotel room enhances by 20%, and the quantity supplied enhances by 10%.
    • The price of health care goes up by 50% , and the quantity supplied enhances by an equal amount.
    • The price of a book enhances by 10%, and the quantity supplied increases 20%.
    • In the above examples, which is more elastic and which is the least elastic? Why?
  • What kind of supply and demand elasticities would the following goods have, and why?
    • Bridge tolls
    • Beachfront properties
    • Gourmet coffee

 


Related Discussions:- Price elasticity of supply

What are the different types of traning, Q. What are the different types of...

Q. What are the different types of traning? Organizations are utilized to give training to their employees to improve their skills and abilities. Those trainings are largely cl

Management buyout (mbo), Management Buyout (MBO) MBO is the transfer of...

Management Buyout (MBO) MBO is the transfer of ownership to new owners of an entity where the old management and employee base are significant elements.

STRATEGY IMPLIMENTATION, HOW AN ORGANISATION SHOULD UNDERTAKE STRATEGY IMPL...

HOW AN ORGANISATION SHOULD UNDERTAKE STRATEGY IMPLEMENTATION

internal and external forces of organisational change, What are the intern...

What are the internal and external forces of organisational change

Microbiology, what are the applications of microbiology?

what are the applications of microbiology?

Organizing and managing of the resources, Management of a project, which in...

Management of a project, which in my case is the successful launch of the division, is nothing but the necessary planning, organizing and managing of the resources required to achi

Motivational tools to improve employee Motivation, Ms. Janice Alisha is a G...

Ms. Janice Alisha is a General Manager of Production in a company. She finds that there is a need to improve the motivation level of the employees. Suggest some of the motivation

Current and future requirements of leadership, 1. Access and describe curre...

1. Access and describe current requirements of leadership within your selected examples. 2. Develop an internally consistent and plausible scenario of likely future requirements

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