ipl-logo

Acc212 Unit 2 Elasticity

890 Words4 Pages

Microeconomics ECON212 -1504B-01
Instructor: Joseph Parisi
Unit 2- Elasticity
Amanda Kranning
November 2015

In the laws of economics, when the price of an item goes up, the quantity of demand will decline. Elasticity becomes an integrant part by determining the response of this occurrence. The measurement in change in the quantity demanded in response to change in price is call elasticity for demand. By calculating the coefficient of price, elasticity of demand by the formula the determining factor is found.
E_p= Change in quantity demanded
_________________________________
Change in Price

When a good or service is considered elastic, the percentage change in quantity demanded brought about by a price change is greater than 1. This means the quantity demanded is very receptive to price …show more content…

During warmer months, there is a higher demand due to summer vacationers. With the off-season months, beachfront properties lower prices in order to dwell up continuing business. This results in elastic characteristics however, during warmer months the prices go up with a steady increase in visitors making this inelastic. Gourmet Coffee Gourmet coffee, classified as a niche market is an inelastic product. When the price of the coffee increases within reason, the demand does not change. Take in mind the regular customer who comes in every morning for their cup of coffee. The price increase is not going to effect the decision of the customer without there being a remarkable increase in price. This will continue business with a lack of decrease in demand.
Gasoline
As an inelastic product, gasoline always is needed. If the price of gasoline rises by 1% and the quantity demanded falls by 0.2%, gasoline price elasticity of demand is -0.2. (Kevin, 2010) As mentioned above, due to the lack of substitutes for gasoline the necessity will still be there.
Cell

Show More
Related

  • Nt1310 Unit 1 Study Guide

    408 Words  | 2 Pages

    The cell wall gives the cell structure and so do the beams of the stadium. 3. Mitochondria - The mitochondria in a cell is like the crowd at a baseball game. The mitochondria gives the cell energy just like the crowd does at a baseball game. The crowd gets the players pumped up by cheering and yelling.

    Read More

  • R201310 Unit 3.1 Research Paper

    373 Words  | 2 Pages

    3.1 Hardware and Software Requirements Windows MATLAB V.13 Windows7 (R2013a) Processor Dual core, core2duo, Intel I3 RAM 2GB RAM DISK Space Disk space varies depending on size of partition and installation of online help files. The MathWorks Installer will inform you of the hard disk space requirement for your particular partition Graphics adapter 8-bit graphics adapter and display (for 256 simultaneous colors CD-ROM drive for installation from CD. Table 3.1: Minimum Requirements Windows Processor RAM DISK Space Graphics adapter MATLAB Intel I3 2GB 1 GB for A 32-bit or 64-bit V.13 MATLAB only, OpenGL capable (R2013a) 5 GB for a

    Read More

  • Texas Comptroller Case Study

    1040 Words  | 5 Pages

    For example, if demand is more inelastic than supply, consumers will carry the burden of the taxes; this is the current case with sales tax. According to research

    Read More

  • Sci201 Unit 1

    391 Words  | 2 Pages

    Environmental Science and Sustainability (SCI201 -1504A -07) Instructor: Trena Woolridge Unit 4- Discussion Board Amanda Kranning October 27, 2015 Eutrophication is a syndrome of ecosystem responses to human activities that fertilize water bodies with nitrogen (N) and phosphorus (P), often leading to changes in animal and plant populations and degradation of water and habitat quality.(Cloern, Krantz, & Hogan, 2013) Eutrophication forms when an abundance of nitrogen and phosphorus increases growth within an environment.

    Read More

  • Ethanol Vs Corn

    269 Words  | 2 Pages

    Most gasoline has 10-15% alcohol produced from corn. As a result, some say, the price of food has risen, causing hardship, increased food prices, and other problems. What are the real facts? Gasoline has ethanol inside, ethanol comes from corn. Corn is the main source of ethanol, many people spend 50% or more of their income on food.

    Read More

  • Nt1310 Unit 3 Lab Questions

    308 Words  | 2 Pages

    1a. What is a cell? A cell is the basic unit of life. 1b.

    Read More

  • Padd 1 Case Study

    507 Words  | 3 Pages

    First Sarah and I reviewed the demand of gas throughout the years in PADD 1 to see if we can see any noticeable changes in demand and then see if we could correlate those to changes in prices. The first trend we were able to find was that the demand for gas would usually slightly raise in the summer but we could not correlate this to a change in price. This is because, as we read in the additional information provided, people tend to take more vacations and be more active in summer causing a higher demand of gas.

    Read More

  • Gas Prices In The 1920s

    117 Words  | 1 Pages

    No matter the cost of gas prices, the stations will still be full since one of America’s top natural resources is gas and if gas prices go down income follows as directly

    Read More

  • Costco's Macro Environment Case Study

    149 Words  | 1 Pages

    In Costco’s macro-environment, a variety of factors could affect the company’s economic viability. External factors such as inflation, foreign currency exchange rates, levels of unemployment, reduced consumer confidence, and changes in tax policies could unfavorably affect the demand for Costco’s products and services. Prices of some goods and services including food products, are often variant and subject to fluctuations deriving from changes in domestic and foreign supply and demand, competition, taxes, labor costs, or delays in delivery which could significantly affect Costco’s sales. Therefore, the product’s costs and selling could also increase affecting financial results. Other important economic factors include the increasing international

    Read More

  • Fracking Persuasive Essay

    679 Words  | 3 Pages

    What do you do when you run out of gas in your car? Will you stop using your car? or Will you go to the gas station and refill your tank? Natural gas that has been pumped up from fracking nearly fuels 40% of the U.S. energy consumption. Without fracking, the price of gas would have a drastic raise from $3.25 to $11 per gallon, so consumers would have to pay about $130 or more to refill their gas tank.

    Read More

  • Toyota General Environment Analysis

    1506 Words  | 7 Pages

    Price and demand of an item is significant viewpoint which must be considered by Toyota in promoting economy as price and demand impact purchaser what to purchase. Customer’s demands all the more in lower price and less at higher price. Price elasticity of demand is a measure of the greatness by which customers modify the amount of some item that they buy in light of progress in the price of that item Boyes and Melvin (2012). Price elasticity of demand will help Toyota to decide the amount an

    Read More

  • What Is The Primary Market Segment For 1-D Acuvue

    1137 Words  | 5 Pages

    3Cs (Customer) The differentiation value of 1-D Acuvue is convenience and the comfort of the product and less medical complications and hence unscheduled visitors to the opticians. Taking into consideration the past experience of the patients using VCP, the most likely potential users of 1 Day Acutuve will be current disposable lens users, However, despite the high potential the trial launch in western states has proven that the majority of patients are so-called “part-time users”, those who use both type of vision correction products (VCP): spectacles and lenses, with the average use of contact lenses being 4.4 days a week. Therefore the the primary market segment for 1-D Acuvue should be the the part-time contact lens wearer (~4 million

    Read More

  • Coca Cola Demand Curve

    1041 Words  | 5 Pages

    DEMAND CURVE Demand is defined as the different quantities people are willing to buy at different prices. As the price of good increases the demand decreases and vice versa. The law of demand states shows an inverse relationship between price and quantity demanded. The demand curve shows the relationship between the quantity of a good a consumer is willing to buy and the price of the good. The equation for that shows the relationship between the quantity demanded and price is as given below: QD =

    Read More

  • Persuasive Essay: The Benefits Of Drinking Coffee

    742 Words  | 3 Pages

    Coffee is one of the most popular drinks in the world. In fact, it is estimated that every year, more than 400 billion cups of coffee are consumed all across the world. For many, it is the choice of drink early in the morning before work while for others it is the drink of choice when they want to burn the midnight oil. Well, whatever the case, there are many benefits in drinking coffee and some are quite shocking and unexpected too! 1.

    Read More

  • Essay On Human Body

    924 Words  | 4 Pages

    There are millions of these cells inside the human body, and each has a different type of responsibility, or function. There are an infinite amount of cell types, and a few examples of these types are: 1) muscle cells, 2) nerve

    Read More

More about Acc212 Unit 2 Elasticity

Open Document