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ELASTICITY OF DEMAND
TVS, it. THE UNIT
The prices it. A unit
The prices it. A unit
At factor of price elasticity the sign falls, and its value
It is treated on absolute size.
If the factor of price elasticity of demand is equal to zero, demand absolutely
The factor of price elasticity of less unit testifies about
Rather not elastic demand.
At Er = 1 speaks about individual elasticity of demand. It happens, when
Percentage change of demand to equally percentage change of the price. If
The factor of price elasticity of demand is more than unit, demand rather
It is elastic.
At factor of elasticity of demand under the price, aspiring to
Infinity, demand is considered absolutely elastic. It occurs in that
Case when at a constant price demand beyond all bounds grows that is
Consequence of action of its not price factors: fashions, advertising, growth expectations
The prices, ecological conditions, etc.
For the characteristic of price elasticity of demand it is possible to use and
Graphic method. Then absolutely not elastic demand will look in a kind
Direct, parallel axis of ordinates (fig. 7.5.), absolutely elastic - in a kind
Direct, parallel axis of abscisses (fig. 7.5). Generally than corner more
Inclination of a curve of demand, the more elastically demand (fig. 7.5 it2).
Fig. 9.5. The curves characterising elasticity of demand
Absolutely not elastic demand;
Absolutely elastic demand;
it1 - Rather not elastic demand; it2 - rather elastic
At the analysis of demand for innovations studying of influence on it is interesting
Incomes of consumers. Depending on production purpose -
Technological or household, the information will differ
Base of the analysis. In the first case can be used given to the official
The reporting of the enterprises, in the second - published and given on
To inquiries Goskomstat data.
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