Economics - Price Elasticity of Demand

The four key concepts in this simulation focused on the following:

Price press stud

The percent alteration in want mensuration can be more or less than the swop in its price. Relative elasticity/ nonresilientity of demand indicates whether the percent alter in demand quantity is less than percent commute in price. In the long-term, demand for any product tends to be more price elastic due to the availability of substitutes. Elasticity of Demand also indicates whether revenue will growth or decrease.

Substitute

Cross-price elasticity of demand is calculated as the percent alteration in demand divided by the percent salmagundi in price of the substitute and will determine the order of the shift in the demand influence. Price elasticity is continuously positive for two substitutes.

Complement

Cross-price elasticity of demand is calculated as the percent turn in demand divided by the percent change in price. A change in price of a complement will determine the magnitude of the shift in the demand curve. Price elasticity is unendingly negative for complements.

Income

A change in income causes a shift in demand. Income elasticity of demand is calculated as the percent change in demand divided by the percent change in income. This change determines the magnitude of the shift. Demand can increase or decrease with the increase or decrease in income.

1) Was the product price elastic or price inelastic? What was the impact of raising the price of the product or weighed down the price of the product based this determination?

Along any straight-line demand curve, elasticity decreases from infinity to zero. In the range of the demand curve where elasticity is more than 1, decreasing price increases revenue. In the hydrophobia where elasticity is less than 1, however, decreasing price decreases revenue. My service extract is Doggie Day Care and I have undercoat it...

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