( price ) elasticity of price expectation :- The elasticity of price expectations is defined as the change in future prices expected as a result of current price changes. When this exceeds unity, it indicates that buyers expect future prices to rise ( or fall) more than current prices have changed. The elasticity is particularly useful in estimating demand in an inflationary environment. A positive coefficient, particularly if it is greater than unity, suggest that current price increase may shift the demand function to the right, which may result in the same or greater sales at the higher prices while consumers try to beat the expected price increases by building up stocks. Eventually, however, the large inventory accumulated by the consumers try to beat the expected price increases by building up stocks. Eventually , however, the large inventory accumulated by the consumer, or a competitor's reactions, will tend to lower the elasticity perhaps even turning it negative , & will result in shifting the demand curve to the left. from kadambari (Ur helpful friend)
in oligopoly what is the nature of price elasticity
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
distinguish between price elasticity of demand and income elasticity of demand
price elasticity
Expectations of the future price
in oligopoly what is the nature of price elasticity
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
There must be a change in the price to calculate the price elasticity. Elasticity depends on the changes in the demand of a good or service based on the change in the price of a good or service.
distinguish between price elasticity of demand and income elasticity of demand
The price elasticity refers to the change in demand due to the change in price. The income elasticity of demand on the other hand refers to the change in demand due to the change in income.
The price elasticity of salt is lower than that of the Toyota car because by changing the unit of measurement of salt leaves the elasticity value the same.
price elasticity
what are the importants of price elasticity of demand to a cellphone dealer
price elasticity income elasticity cross elasticity promotional elasticity
role of price elasticity of demand in managerial decisions