UNDERSTANDING PRICE ELASTICITY OF DEMAND, PRICE ELASTICITY OF SUPPLY, AND HOW THESE IMPACT TAXATION
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UNDERSTANDING PRICE ELASTICITY OF DEMAND, PRICE ELASTICITY OF
SUPPLY, AND HOW THESE IMPACT TAXATION
Demand elasticity is calculated as the ratio of the change in demand (percentage) to the
change in price (percentage). Demand is said to be price elastic when a change in price causes a
greater than proportional change in demand and the ratio is greater than one. Demand is inelastic to
price when the change in demand caused by a change in price is less than a certain proportional
change and the ratio is less than one. Demand can be absolutely inelastic when a change in prices
does not cause any change in demand, and absolutely elastic when goods and services are purchased
at only one constant price.
Price elasticity of supply is a measure used in economics to show the responsiveness, or
elasticity, of the quantity supplied of a good or service to a change in its price or cost. The elasticity
is represented in numerical form, and is defined as the percentage change in the quantity supplied
divided by the percentage change in price.
Mūsų mokslo darbų bazėje yra daugybė įvairių mokslo darbų, todėl tikrai atrasi sau tinkamą!
Panašūs darbai
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