0
Add your answer:
Earn +20 pts
How do you measure whether producers respond to a price change?
a consumer will respond to the price changes in such a way that it could express its marginal utility
Why do consumers sometimes take a while to respond to price changes?
Consumers cannot find acceptable substitutes immediately. Most consumers nowadays do price comparisons. Even being 'forced' to accept a higher price (e.g. all prices the same on comparable products) does not automatically bring buyers because buyers hate how companies dictate our buying practices.
What is a measure of how consumers react to a change in price?
The answer is Price Elasticity of Demand tool.
What are the changes under the elasticity concept?
Under the concept of elasticity, changes in price lead to changes in quantity demanded or supplied. If demand is elastic, a small change in price results in a proportionally larger change in quantity demanded. If demand is inelastic, a change in price leads to a proportionally smaller change in quantity demanded. Elasticity helps to understand how consumers and producers respond to price changes in the market.
Is oil elastic?
Yes, oil is considered to be inelastic in the short term, as changes in price do not lead to significant changes in demand. However, in the long term, demand for oil can become more elastic as consumers have more time to adjust to price changes and find alternatives.
Change in market price?
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.
What economic concept is defined as the measure of how responsive consumers are to price change?
That one.
Demand is said to be elastic if?
buyers do not respond much to changes in the price of the good.
Which economic concept is defined as the measure of how responsive consumers are to price change?
consumer expectation
The consumers price index helps the U.S. government measure what?
inflation
Consumer price index?
Consumer price index is a way to measure the averages of prices of consumer goods and services. It is calculated by taking price changes of items or goods and averaging them. Consumer price index is used to assess price changes associated with the cost of living.
A demand curve is an accurate tool for predicting the decisions of consumers as long as what condition exists?
haha
