【填空】The demand for chocolate is elastic, because if the price of chocolate gets too high, consumers will buy less of it. 巧克力的需求是有弹性的,因为如果巧克力的价格过高,消费者会减少购买。 【填空】【跟读】When supply and demand reach equilibrium, there is neither a surplus nor a shortage...
If people buy more or less of a product as its price changes, the demand for it is elastic. On the other hand, if demand is not affected by price, it is inelastic. For example, people will pay for water even if the price is high, because they need it to survive. Equilibrium. Equi...
In general, less elastic industries need electricity more. In other words, electricity is a necessary good for inelastic industries. The low elasticity implies that these industries cannot reduce electricity consumption even when electricity prices increase. This implies that a high electricity price is...
The estimation of the demand for electricity is important in the appraisal of power projects because it often affects the benefits of the projects. For projects that involve a decision about the timing of investment- when to install new capacity to meet the demand- the precision of the electrici...
But in other instances, the demand is not elastic at all. Water, for example, is usually supplied in any given municipality by a single quasi-governmental organization, often along with electricity. When something consumers use daily, such as electricity or water, has a single source, the dema...
Very low short-run demand elasticity and supply becomes very inelastic at high demand levels as capacity constraints are approached; as a result, spot electricity prices are inherently very volatile and unusually susceptible to the creation of opportunities for suppliers to exercise market power unilater...
The non-negativity constraint in this study incorporates consumer’s returns handling costs which is different than the previously used constraint. As an extension of the additive case, the model with iso-elastic demand is discussed. The theoretical analysis is enriched with numerical examples....
In other words, even if the price increases significantly, consumers will still demand bread and electricity, because they need it. Luxury goods, such as holidays, are more elastic. If the price of flights increases, the demand is likely to fall significantly. Substitutes If the good has ...
Goods that are considered essential have a low elasticity of demand. Electricity, gas, oil, and water are all relatively inelastic because consumers rely on these as necessities rather than luxuries. Also, keep in mind that the price elasticity of demand is very time-sensitive. More ...
Since the value is positive, the good is elastic. It implies that for every 1% increase in income, people will demand an increase of 1.5% in the number of goods. Thus, if the average income is $100,000 and at that level of income people desire 70 meals out a year, they would deman...