--%>

Explain the term relatively inelastic demand

Explain the term relatively inelastic demand.

E

Expert

Verified

Relatively inelastic demand:

Now there quantity demanded changes less than proportionate to variation in price. A huge change in price leads to small change within demand. In SUCH case demand curve will be steeper as well as ep<1.

1218_Relatively inelastic demand.png

   Related Questions in Managerial Economics

  • Q : Imports good in purely competitive

    When this purely competitive labor market is primarily in equilibrium at of D0L, S0L, a shift to equilibrium at D2L, S0L would be probably to follow by increases in: (1) minimum wage laws. (2) imports of this good from forei

  • Q : Problem regarding Income and Demand

    When family incomes within the United States raised sharply and therefore, sales of cashmere sweaters improved enormously, in that case cashmere sweaters are: (1) luxury goods. (2) preferred to wool or cotton sweaters. (3) inferior goods. (4) prestige goods. (5) norma

  • Q : Explain about perfectly price elastic

    I have a problem on perfectly price elastic supply curve that is given below: A perfectly price elastic supply curve is: (w) vertical. (x) horizontal. (y) positively sloped. (z) negatively sloped.

    Q : Purely competitive labor market The

    The individual household within a purely competitive labor market as: (w) has a perfectly elastic supply of labor at the market wage. (x) has a perfectly inelastic supply of labor at the market wage. (y) faces a perfectly elastic demand for its labor

  • Q : Explain important question regarding

    Illustrates the important question regarding the managerial economics?

  • Q : Function of Profit Maximization in

    For a purely competitive firm operating within a competitive labor market as: (1) the marginal resource cost of labor exceeds the wage rate. (2) the supply of labor is perfectly inelastic. (3) total labor costs are independent of the

  • Q : Introduction of the term Break Even

    Give a brief introduction of the term Break Even Point. How does BEP aid in making business decision?

  • Q : Illustrates the criteria for good

    Illustrates the criteria for good forecasting method?

  • Q : Explain the about Fiscal Policy Explain

    Explain the about Fiscal Policy.

  • Q : Illustrate profit or loss on the cost

    A firm's total profit can be computed as all of the given except w) total revenue minus total cost. x) average profit per unit times quantity sold. y) (price minus average total cost) multiply with times quantity sold. z) marginal profit times quantity sold.