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. ...
Download paper


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

Related Essays

Management (impact of recent economic crisis)
Such as accountability show the facts of transparency and control shows the overall hands on the situation. With a literature review these are discussed below:
2 pages (502 words) Essay
Human Resource Management - economic prosperity
To become a multinational company the management has to expand its units across the country. As company and its other units are slowly expanding so does the problems are increasing day by day.
10 pages (2510 words) Essay
Influence of Non-economic Environments on Management Effectiveness
This paper offers a comprehensive analysis of the non-economic factors of business environment and describes the effects that this factors could have on an overall economic performance of any organization.
9 pages (2259 words) Essay
Economic versus Non-Economic Issues in Union Environments (Employee Labor and Relations class) Human Resource Management
The strategic response to the articles will be focused on “fostering” rather than “forcing negotiations” [Walton, Cutcher-Gershenfeld, and McKersie, 2000, p. 54] between employment and employer – in other words, the aim is to further the negotiation process as opposed to forcing another route for a resolution (e.g. binding arbitration).
2 pages (502 words) Research Paper
Petroleum Economic and Oil field management
dvantageous to tax rent rather than profits because they yield more because they can be taxed to slightly less than 100 percent and cannot distort behavior providing an ideal non-distorting tax (Passant, 2011:3).
6 pages (1506 words) Essay
petroleum Economic and Oil field management
The economics of non-OPEC supply, the economics of supply of other liquids and the investment and production decisions of OPEC countries will definitely influence the spot price over the next three months. For other liquids and petroleum, the main long-term prices and supply determinants can be summed up in four main categories that include other liquids supply economics, non-OPEC supply economics, global demand for other liquids and petroleum, and OPEC production and investment decisions (Elton, Gruber, Agrawal & Mann, 2004: 27247).
6 pages (1506 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!