Tag Archives | Price Elasticity

Relationship between Price Elasticity of Demand and Total Expenditure | Microeconomics

Prof. Marshall works out a relationship between price elasticity of demand and total expenditure. He estimates the degree of price elasticity of demand depending on the change in total expenditure caused by a change in own price of the commodity. He states three different situations, as under: Situation 1 - Ed = Unitary or Ed = 1: Elasticity of demand [...]

By Sucheta A|2018-06-18T10:58:06+05:30June 18, 2018|Relationship|Comments Off

Price Elasticity of Demand: Top 10 Uses

The following points highlight the ten practical uses of concept of price elasticity of demand. The uses are: 1. Wage Bargaining 2. Bumper Crops 3. Automation 4. Airline Deregulation 5. Pricing Policy 6. Excise Duty 7. Optimal Tax on Petroleum 8. Minimum Wage 9. Heroin and Street Crime 10. Devaluation. Use # 1. Wage Bargaining: The capacity of trade unions [...]

By Samia Rekhi|2016-05-16T07:54:22+05:30May 16, 2016|Elasticity of Demand|Comments Off