Economic And Management - Essay Example

Only on StudentShare

Extract of sample
Economic And Management

Elasticity is an easy way of enumerating cause and effect correlations. It is described normally as a mathematical measure of the responsiveness of one economic variable (the dependant variable) following a change in another influencing variable (the independent variable), ceteris paribus.
Now we shall understand what Price Elasticity of demand (PED) is, it is the measure of responsiveness of demand for a good following an alteration in its own price. If demand is elastic, then a little transform in price will consequence in a comparatively big change in amount demanded. However, if price increases by too much and quantity demanded descends vaguely, then demand would be price inelastic. (Hubbard and O'Brien, 2008)
If co-efficient of PED = 0, it means that demand is perfectly inelastic. This means that any change in price whether increase or decrease does change the quantity demanded. Hence making its demand curve a vertical line in price(x axis) to quantity(y axis) space.
If co-efficient of PED is between 0 and 1, when we get values of PED between 0 and 1 than we say PED to be inelastic this means that percentage change in demand is lesser than percentage change in price. Producers know that the change in demand will be proportionately smaller than the percentage change in price. ...Show more


This paper intends to define the concept of elasticity and the concept of price elasticity of demand. At first deals with explaining what Price Elasticity of demand (PED) is and what factors determines PED of a good. Then after giving this basic knowledge it relates the scenario with the concept of PED and total revenue.
Author : juwan71
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Economic And Management"
with a personal 20% discount.
Grab the best paper

Related Essays

Management (impact of recent economic crisis)
By the examination of the themes of representation, control and accountability the explanation of the recent failures of financial institutions should expose. All these are a major factor for an organization as the image, performance, objectivity etc are assessed and depends on theses factors.
2 pages (500 words) Essay
H1N1 and Canadian Health Care
It was this year of June 2009 wherein the World Health Organization (WHO) declared H1N1 as pandemic flu; affecting more than 70 countries. This pandemic flu started in Mexico last May 2009 with a toll death of about 90%. It attacks young and middle-aged adults leaving the highest mortality rate and a lower mortality rate for the elderly.
15 pages (3750 words) Research Paper
Human Resource Management - economic prosperity
The quality of the product should always be of high standard. The service side concentrates mainly on providing services to the customer. Customer care section plays an important role on deciding how good a company is and should be taken seriously at all times.
10 pages (2500 words) Essay
Influence of Non-economic Environments on Management Effectiveness
The organization should have a flexible business strategy with the allowance for quick alteration of its business decisions considering the change in non-economic factors. The particular elements of this factors are not under the firm’s control (like environmental conditions) or are just partially depended on the business will (human resources).
9 pages (2250 words) Essay
Economic versus Non-Economic Issues in Union Environments (Employee Labor and Relations class) Human Resource Management
rs, but also stage and production workers (see: APPENDIX-C) involved in a musical theatrical production of La Boheme, which is a major and well-known opera composed in the nineteenth century. The focus of the following will be broken down into the defining the interests
2 pages (500 words) Research Paper
Petroleum Economic and Oil field management
When the elasticity of the supply is static, the supply curve slopes upward and the supplier’s income splits between economic rent and opportunity cost. When the supply is inelastic, the supply curve becomes vertical and when it is elastic, the curve goes horizontal. It is
6 pages (1500 words) Essay
Petroleum Economic and Oil field management
The future expectations with respect to demand and supply for oil will influence prices. Supply and demand are balanced by responses to the current price movements where complexity in the evolution of underlying expectations is likely to influence prices in the
6 pages (1500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email