Elasticity of demand for a commodity

Assignment Help Business Economics
Reference no: EM13832312 , Length: word count:500

a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity.

(i) Consumer preferences, that is, whether consumers regard the commodity as a "luxury" or a "necessity".

(ii) The narrowness of definition of the commodity.

(iii) The length of the period under consideration

(iv) The availability of substitutes for the commodity question #Minimum 100 words accepted#

No of Pages/Words : 500 words

Reference no: EM13832312

Questions Cloud

Provide details of your scope of engagement : Provide details of your 'scope of engagement' (i.e. what exactly were you instructed to do). Critically analyse the current understanding of CSR, referring to academic literature and industry standards.
What about bill maxwell article : what about Bill Maxwell article
Question regarding the transportation problem : 1. Consider the following transportation problem:
Firm value due to expected bankruptcy costs : What is the decrease in firm value due to expected bankruptcy costs? A.    $3,325,000 B.    $4,950,000 C.   $875,000
Elasticity of demand for a commodity : Explain why each of the factors may influence the own price elasticity of demand for a commodity - The narrowness of definition of the commodity.
Problem of essentials of geometry : Complete Problem of Essentials of Geometry. Use the table below to show your work and solve the problem. You may add or delete rows as necessary.
Discuss the factors that encourage internationalisation : Discuss the factors that encourage internationalisation of service organisations. For a service organisation with which you are familiar, explain which of these drivers are currently most relevant, and how this might change over time.
Calculate the demand elasticity of the hotel room : What happens to total expenditure of the tour agency if the price falls from $350 to $250 per night per room? Calculate the demand elasticity of the hotel room. Is the demand for hotel room elastic, inelastic, or unit elastic?
Develop a five year strategic plan for singapore post : Develop a 5 year strategic plan for Singapore post (Singpost)

Reviews

Write a Review

Business Economics Questions & Answers

  Complete the columns for to conclude the profit maximizing

Complete the columns for to conclude the profit maximizing output for this firm. Draw the relevant graph to show the profit maximizing output.

  What is the annual market interest rate

If the inflation free rate is an annual 13% and inflation is an annual 4%, what is the annual market interest rate? If you anticipate an annual inflation rate of 4.0% in the current economy and can make an investment that is expected to appreciate at..

  Associated with firms that use the market

Several costs may be associated with firms that use the market. These include which of the following:

  Equivalent annual cost of operating the engineering center

An auto-part manufacturer is considering establishing an engineering computing center. This center will be equipped with three engineering workstations that each would cost 25,000 and have a service life of five years.

  If the fed purchases treasury bills from banks

If the Fed purchases Treasury Bills from banks:

  Expected and disposable future income

Discuss how your expected and disposable future income, after receiving your college degree, may change your saving and investment decisions and transactions in the loanable funds market.

  Calculate the annual equivalent total cost for each machine

The annual opperating cost of the new operating machine is $7,000. The company uses a 20% MARR. Calculate the annual equivalent total cost for each machine. Would you replace the old machine at this time?

  Elucidate the effects of such expectations

elucidate the effects of such expectations on the following variables today: output (Y), nominal interest rate (i), exchange rate (E), investment (I) and trade balance

  Assume interest is compounded monthly

Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of $2,000 from Sandy today. What is the interest rate that Sandy is getting? Assume interest is compounded monthly.

  Coordination needed to reduce dollar exchange rate requires

Suppose the Bank of Japan (BOJ) and the Federal Reserve Bank decide to coordinate policy in an effort to lower the dollar exchange rate (that is, to reduce the number of Japanese yen needed to purchase one dollar). The policy coordination needed to r..

  Q1 if the demand curve is qp 20-2p and the marginal cost

q1. if the demand curve is qp 20-2p and the marginal cost is constant at 8 what is the profit maximizing monopoly

  Standard deviation for the forecasted federal funds

Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.

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