After watching the Section 5.3 Review and Section 6.2 Review videos I have realized that gas price changes are inelastic. Inelastic demand is “when percent change in quantity demanded is less than percent change in price‚ so price elasticity is less than 1 in absolute value” (Hubbard & O’Brien‚ 2015b). This means that when a price of a product changes‚ such as gas‚ it does not affect the demand of that good or service. I feel that consumers will be responsive to the price change when these fluctuations
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INEALSTIC DEMAND Student Name Institution Inelastic Demand Inelastic demand is a situation whereby a one per cent change in price of a commodity leads to less than one per cent change in quantity demanded by the consumers. Products that exhibit inelastic demand have an almost constant demand no matter the change in prices. Figure 1: Diagram illustrating inelastic demand As shown from diagram above‚ the price changes from P1 to P2 and quantity fall from Q1 to Q2. The
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I would say that when I think of a company that has inelastic demand on their products it would have to be Apple. Apple charges above average prices for their phones‚ computers and music players all with the marketing strategy of superior quality. When a company achieves inelastic demand it is because of two possible reasons. They have either developed highly differentiated products or brands or they have achieved a monopoly on a market or product category. (Tedesco‚ 2011) If you look at Apple they
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elasticity of demand (PED) is the responsiveness of quantity demanded in relation to the price. Normally as price increases for an elastic good the quantity demanded will fall. This is affected by how many close substitutes there are for the good and if the good is a luxury good (jewelry) or a necessary good (food). If the price of a certain type of cheese increases‚ less will be demanded because there are many substitutes available such as other brands of cheese. The inelasticity of demand is applicable
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Task 1 The demand for newspaper is inelastic while the supply for newspaper is elastic in the short run. This means the quantity demanded for newspaper does not respond strongly to price changes but the quantity supplied for newspaper is responsive to price changes in the short run. (Mankiw‚ 2009) The demand is inelastic because newspaper has very few substitutes. Although online news is getting popular nowadays‚ the majority still prefer to read the papers. Besides‚ newspaper is a necessity
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about the countless animals being tortured. It can be argued that animal experimentation can be valuable and have helped find cures for many diseases. However‚ the numbers of successes are minimal. Testing on animals is brutal and unnecessary‚ and should be prohibited in all countries. Each year in the United States‚ an estimated seventy million animals are hurt and killed in the name of science (ASPCA). While there are many strict policies as to how animals are treated‚ it is impossible to monitor
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businessman would always raise prices when facing an inelastic demand curve but might or might not raise price when facing an elastic demand curve? Explain and justify your answers in detail. Elasticity and profit maximization behavior When facing an inelastic demand curve‚ a profit maximizing businessman would always raise price because increase in price will bring about increase in total revenue. On the other hand‚ when facing an elastic demand curve‚ he might or might not raise price because increase
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MARKETING PRINCIPLES ASSIGNMENT * Identify TV Ads that were aired and then was immediately withdrawn. What was the reason? * TV ADVERTISEMENT: San Marino Corned Tuna with Dingdong Dantes as the commercial model The commercial of San Marino Corned Tuna of CDO Foodsphere had been prevented by BPI from airing because of the complaint by Century Canning. Their complain was on San Marino Corned Tuna’s tagline “More tuna” which they say was comparing the contents of San Marino and Century
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In Coates’ book‚ We Were in Power for Eight Years‚ he explores Obama’s presidency throughout the years while reflecting on his own experiences during Obama’s two terms. Critics of Coates‚ claimed the book lacked crucial facts about Obama’s presidency and the questioned simmered to how should blacks be imagined in politics? Must blacks be obligated to involve themselves in racial‚ international politics‚ or socioeconomic issues? West and Mishra critiques evidently agree blacks should‚ while Kelley appears
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A literary element I liked about We Were Liars was theme. The theme of “We Were Liars” is the importance of family. In the story the Sinclairs aren’t a family‚ Cadence’s mother and aunts pressured the Liars into acting a certain way that grandfather wanted.So the mother and aunts could get Clairmount and the riches.”Welcome to the beautiful Sinclair family. No one is a criminal. No one is an addict. No one is a failure”(2)This is all a lie‚ the Liars are criminals‚ Cadence takes these addicting meds
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