opinion about impairments and touchstone Demanded
;Supplied. Its the most popular tool among the
World and ,Ein truthbody use it because it
simplifies data analysis,thus,no one uses other
ways because its more accurate and more
simple.
Importance of elasticity:
1.Corporations how to make their prices
2.Consumer surplus.
3.Producer surplus
4.Government surplus
5. Ease on Economists to study their trade
well.
Elasticitys idea is to pull the
responsiveness of amount supplied or quantity
demanded TO price.
Price Elasticity:
When theres an inwrought good like fuel if its
price increase ,Consumers lurch stop using it so
theyll search for a substitute whatsoever of poor
population installed gas system in their cars,lowermiddle
level people put 80 instead of 92 or
90,higher middle-level people put 90 instead of
92 รข€¦
This is a very Elastic Example of price
elasticity.
Classifying the demand and supply as
Elastic or inflexible:
when the quantitys serving is more the
price percentage whence the quantity demanded or
the quantity supplied then this case is Elastic.
E>=1
and if the price percentage is more than the
quantitys percentage then this case will be
Inelastic.
E<1
theres ii types of price elasticity:
Price elasticity of Demand & price elasticity of
supply:
PEDs rule: ED=% Δ in quantity demanded
%Δ in price
PESs rule: ES =%Δ in quantity supplied
%Δ in price
calculating price elasticity using graph:
% flip-flop in price:
P2-P1
(P1+P2)/2
%change in quantity:
Q2-Q1 *100
(Q1+Q2)/2
types of Elastic and Inelastic Demand:
this is a emblem of Perfectly inelastic demand:
this is a figure of perfectly Elastic demand
figure::
Factors that help elasticity:
1.substitutes: when theres a lot of substitutes
in the market for the same product Elasticity
happens,thus,when theres a lot of opponents
no attach to can raise the price more than the
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