Question: Explain why the demand for the good or service provided by a firm is elastic or inelastic. How does the elastic or inelastic demand influence

  • Explain why the demand for the good or service provided by a firm is elastic or inelastic. How does the elastic or inelastic demand influence pricing decisions by the firm to maximize profit? What are the impacts of elastic demand and inelastic demand on total revenue?
  • Provide examples on how the availability of close substitutes affects price elasticity of demand for a good or service.
  • Give specific examples of necessities or luxuries, and explain how they affect price elasticity of goods or services.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Explain why the demand for the good or service provided by a firm is elastic or inelastic. How does the elastic or inelastic demand influence pricing decisions by the firm to maximize profit? What...

Q:

Explain why the demand for the good or service provided by a firm is elastic or inelastic. How does the elastic or inelastic demand influence pricing decisions by the firm to maximize profit? What...

Q:

I have attached the discussion board 6 questions,scenario. and lectures for yourreview and response. I will submit a students questions for a response when I receive one. Thank You MKT500 Discussion...

Q:

Respond to post below The moment the price of a product or service begins to have a significant effect on consumers' demand; it results in an elasticdemand.A slight fall in the price of the product...

Q:

Respond to post below . We would want to have a discourse of ideas and information. Therefore, you may not want to leave your response at "Great post! I like it!". Feedbacks, opinions, questions etc...

Q:

3. Using the midpoint method The following graph gives two points (A and B) along a hypothetical demand curve for jackfruit. 5. The variety of demand curves The following graph displays four demand...

Q:

Help me to answer these questions Read the sentences carefully. Write TRUE if the statement is correct and FALSE if the statement is incorrect. 1. Elasticity of demand refers to the change in demand...

Q:

Help me explain and answer these Read the sentences carefully. Write TRUE if the statement is correct and FALSE if the statement is incorrect. 1. Elasticity of demand refers to the change in demand...

Q:

Other Problems: 1. Use the information in the table below to identify the type of cross elasticity relationship between products X and Y and whether demand is cross elastic or cross inelastic in each...

Q:

use the charts below for question 1 6. a) Explain the role of demand, variable cost, and perceived benefits/value in pricing. Be sure to define variable cost and value. How does price influence...

Q:

What power bases are found in international marketing channels?

Q:

Show that there is no knight's tour on a 4 Ã 4 chessboard. A knight is a chess piece that can move either two spaces horizontally and one space vertically or one space horizontally and two...

Q:

Madison Company is a land management company that generates most of its revenues through leasing land. The company experienced the following events during Year 2: Madison Company issued $838,000 of...

Q:

An effective system of internal control centralizes functions in a single capable individual.

Q:

Some firms swear by unorthodox interview methods. For example, Tech Planet, of Menlo Park, California, uses weekly lunches and wacky follow-up sessions as substitutes for first-round job interviews....

Q:

For the jobs of security guard, and valet, develop five additional situational, five behavioral, and five job knowledge questions, with descriptive good/average/poor answers.

Q:

Working individually or in groups, develop a short, programmed learning program on the subject Guidelines for Giving a More Effective Lecture.