--%>

Elastic and Inelastic demand

An increase in the price of goods, outcomes in an increase in expenses on it. This demand is elastic or inelastic?

Answer: Inelastic since there is direct relation among price and expenditure.

   Related Questions in Microeconomics

  • Q : Definition of Consumer Surplus The

    The difference among the price a consumer would have been eager to pay for the commodity and the price consumer really has to pay is termed as: (i) Gain. (ii) The substitution effect. (iii) The income effect. (iv) Consumer surplus.

  • Q : Stronger Incentives for Productive

    Compared to the requirement and equity standards, the contribution standard of income distribution refers to: (1) generate the weakest incentives for production. (2) best provide for people in poverty. (3) be most compatible along wit

  • Q : Demand when oligopolistic firm

    When an oligopolistic firm increases its price, in that case the demand this faces will be: (1) more elastic if the other firms in the industry raise their prices. (2) less elastic when no other firms in the industry raise their prices. (3) more elast

  • Q : What is Marketability What is

    What is Marketability. Write some points for it.

  • Q : Marginalism and characteristics Explain

    Explain about Marginalism and characteristics.

  • Q : Prices of output and economic profit in

    for a purely-competitive decreasing-cost industry in a short run equilibrium in that typical firms temporarily produce economic profits, and the average total costs a typical firm incurs are positively associated to t

  • Q : Marginal and average revenue-market form

    In which market form is the marginal and average revenue of a firm always equivalent? Answer: Average and marginal revenue of a firm are for all time equivalents beneath perfect competition.

  • Q : Hike in relative price of a good I have

    I have a problem in economics on Hike in relative price of a good. Please help me in the following question. The hike in relative price of a good will quickly increase the: (i) Quantity demanded. (ii) Market supply. (iii) Rate of inflation. (iv) Quant

  • Q : Ratio of Wealth and Poverty In 1980

    In 1980 year, the chief executive officers that stand for CEOs of main corporations had income which averaged roughly 40 times as much as the workers they working. In 2005, such ratio is less than: (1) twenty to one. (2) forty to one. (3) one hundred

  • Q : Marginal cost of capital What do you

    What do you mean by the marginal cost of capital?