Elastic goods are goods that have a significant change in demand or supply in response to a change in price. Generally, these are goods that are not considered necessities, or goods for which there are substitutes readily available. Using demand as an example, if the price of a good were t...
Perfectly Elastic Supply - Perfectly elastic goods are more theory than reality. A perfectly elastic good would have an unlimited supply at a single price point and would not allow another price level or quantity level. This shows the curve of perfectly elastic supply Perfectly Inelastic Supply ...
demand model, supply generally increases when the price increases and decreases when the price decreases. The concept ofscarcity, or the concept that resources are limited, applies here as well. Since all companies are subject to scarcity, businesses will try to move resources to profitable goo...
Explain how a monopolist chooses the quantity of output to produce and the price to charge. Explain why the demand curve facing a monopolist is less elastic than one facing a firm that operates in a monopolistic-ally competitive market (all other f...
Economic products refer to services or goods businesses provide to meet the unending human needs and wants. These products have a degree of scarcity and therefore require a fair economic distribution. Answer and Explanation:1 Become a Study.com member to unlock this answer!Create your account ...
Examples of Goods with a Price Elastic Demand Housing Furniture Cars Factors That Affect the Price Elasticity of Demand 1. Availability of close substitutes If consumers can substitute the good for other readily available goods that consumers regard as similar, then the price elasticity of demand wou...
Features of a Monopoly Market There are many different types of monopoly markets, but all have one common feature: a downward sloping demand curve. In other words, the demand curve of a monopoly market is not perfectly elastic. Monopolies are the opposite of oligopolies; multiple, smaller firms...
Examples of Goods with a Price Elastic Demand Housing Furniture Cars Factors That Affect the Price Elasticity of Demand 1. Availability of close substitutes If consumers can substitute the good for other readily available goods that consumers regard as similar, then the price elasticity of demand wou...
Elastic demand refers to the demand for a good or service changing significantly when the price moves up or down. For example, if the total cost of a vacation to a specific destination increases by 20%, including airfare and accommodation, the demand for that vacation will decrease amongst con...
there is little change in the quantity of demand even with the change of the good's price. The change that is observed for an elastic good is an increase in demand when the price decreases and a decrease in demand when the price increases. ...