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commodities that are viewed as luxuries typically have price elastic demand and commodities that are requirements have price inelastic demand
time is a significant determinant of price elasticity if a price changes it might take consumers a certain amount of time to discover alternative
the cross elasticity of demand calculates the responsiveness of the quantity demanded of one product to alters in the price of another product
the income elasticity of demand calculates the responsiveness of the quantity demanded of a commodity to changes in consumers incomes this is
interest rate sensitivity can also be understood from another perspective the total cost of a commodity is not just its price but also what must
list and describe the determinants of the price elasticity of demand and of
what are the income and cross elasticities of demand why might they be useful
describe what the price elasticity of demand is and why it is of interest in examining markets might it be beneficial in the airline industry
situation is where a luxury is there there is the snob appeal possibility where the higher the price the more desired the commodity it often
the reason that an entrepreneur supposes the risk of starting a business is to earn profits the fundamental assumption in the theory of
an economists view of costs contains both explicit and implicit costs explicit costs are accounting costs and implicit costs are the opportunity
for the purposes of economic analysis a normal profit contains the cost of the lost opportunity of the next best option allocation of the firms
normal 0 false false false en-in x-none x-none microsoftinternetexplorer4
economies of scale are advantages obtained from a company becoming large and diseconomies of scale are additional costs inflicted because a firm has
where minimum efficient scale is very huge for capital intensive operations it may be more cost effective to allow one company to spread its fixed
the us automobile industry the soft-drink industry the brewing industry segments of the fast-food industry and airplane manufacturers oligopoly will
allocative efficiency criteria are satisfied by the competitive model because p mc in each market in the economy there is no over- or under-
in the purely competitive analysis there were two dissimilar models one model for the industry in which the interaction of supply and demand
there are various implications of the monopoly model many of which lead to criticisms of monopoly on issues of both technical allocative
as there are natural monopoly market situations it is in the public interestto permit monopolies but traditionally in the united states they are
regulation is not a panacea there are troubles with rate regulation in our litigious society the legal proceedings contained in rate
over the course of modern american economic history there have been market failures various social problems and other complexities that have resulted
the demand for every productive resources is a derived demand by derived demand it is meant that it is the output of the resource and not the
monopsony is single buyer of a commodity in the market the mrp slopes downward in an imperfectly competitive resource market serving an not