4 views

Uploaded by kunal

- Price Elasticity of Demand
- Set 6 Answers
- • • • • Concept of Elasticity
- Elasticity of Demand Notes
- CH3-ME
- Measurement of Elasticity of Demand
- Elasticity and Its Application Lect 2 A
- Price Elasticity
- Econ Paper
- Elasticity and Its Application
- circular flow diagram
- Net Elasticity of Demand Case
- elas98
- AEM4150_ SolutionHW1
- Price Elasticity of Demand
- Intervistas Elasticity Study 2007
- 2016 Bpp Passcard f1
- module 1 t2 part 2
- c06yeah!
- Chapter 4

You are on page 1of 23

Economics

Elasticity Of Demand

PRODUCT HISTORY

The company originally started in Switzerland in 1885, when

Julius Maggi took over his father's mill.

Maggi was the first to bring protein-rich legume meals to the

market, and followed up with a ready-made soup based on

legume meals in 1886

In 1947, Maggi's holding company merged with the Nestl

company.

Nestle is a Swiss company, founded in 1866 by Henri Nestle.

Nestle market its products in 130 countries across the world.

Maggi has been Nestl's flagship culinary brand not only in

India, but globally as well.

LAW OF DEMAND

Demand for a commodity increases when

its price decreases and falls when its prices

rises other things remaining constant.

measuring the elasticity of demand : Demand

Determinants Of Demand

Elasticity Of Demand = percentage change

in quantity demanded

percentage change in

determinant of demand

Price

Elasticity

Advertisement

Elasticity

Demand

Income

Elasticity

Cross Price

Elasticity

defined as the ratio of the relative change

in demand and price variables.

e = percentage/proportional change in

quantity demanded

percentage/proportional

change in price

Perfec

tly

Elasti

c

Unit

ary

Elast

ic

Price

Elasti

city

Relati

vely

Inelast

ic

Perfec

tly

Inelas

tic

Relati

vely

Elasti

c

Perfectly Elastic

Consumers have

indefinite

demand at a

particular price

and none at all

at an even

slightly higher

than this given

price, demand is

PERFECTLY

ELASTIC

Perfectly Inelastic

for a commodity

shows no response

to a change in

price/ whatever

change in price,

the demand

remains same, it is

called PERFECTLY

ELASTIC

Relatively Elastic

When the

proportion of

change in the

quantity

demanded is

greater than that

of price, the

demand is said to

be RELATIVELY

ELASTIC

Relatively Inelastic

When the

proportion of

change in the

quantity demanded

is less than that of

price the demand

is considered to be

RELATIVELY

INELASTIC

Unitary Elastic

When the

proportion of

change in

demand is

exactly the same

as the change in

price, the

demand is said to

be UNITARY

ELASTIC

Percentage/

Proportionate

Method

Measurement

Of Price

Elasticity

Arc Method

Geometric/

Point

Method

Point/Geometric Method

This method

attempts to

measure the

price

elasticity of

demand at a

particular

Point Elasticity = Lower segment of demand

point on

curve below the point

Upperdemand

segment of demand

curve below the point

Arc Elasticity

of Demand

measures the

elasticity at

the mid point

between two

points on a

curve

percentage or proportional change in the

quantity demanded to the percentage or

proportional change in income.

in quantity demanded

percentage

change in income

degree of responsiveness of demand for a

commodity to a given change in the price

of some related commodity.

Cross Elasticity Of Demand =

Proportionate/percentage change in

demand for x

Proportionate/percentage change in price

of y

Nature of commodity

Availability of substitutes

Number of uses

Consumers income

Height of price and range of price change

Proportion of expenditure

Durability of the commodity

Habit

Complementary goods

Time

Recurrence of demand

Possibility of postponement

Advertisement elasticity

Market strategy

Housing development strategies

Practical Applications

To businessmen

To the government and finance minister

To international traders

To policy makers

To trade unionists

Thank you

- Price Elasticity of DemandUploaded byishfaq
- Set 6 AnswersUploaded byidentifier
- • • • • Concept of ElasticityUploaded bylakshay187
- Elasticity of Demand NotesUploaded bykalpna_prestige
- CH3-MEUploaded bydhankawdi
- Measurement of Elasticity of DemandUploaded byaquaac
- Elasticity and Its Application Lect 2 AUploaded byapi-3857552
- Price ElasticityUploaded byAbdulla Tasleem
- Econ PaperUploaded byPJu Tern
- Elasticity and Its ApplicationUploaded byapi-3857552
- circular flow diagramUploaded byswapnilmusande
- Net Elasticity of Demand CaseUploaded byKoyel Ghosh
- elas98Uploaded byIdogun Olufemi Ezekiel
- AEM4150_ SolutionHW1Uploaded byBrian Wheeler
- Price Elasticity of DemandUploaded byfurqanhamid2009
- Intervistas Elasticity Study 2007Uploaded byChirita Alexandra
- 2016 Bpp Passcard f1Uploaded byJawad Hanif
- module 1 t2 part 2Uploaded byapi-295043596
- c06yeah!Uploaded byBloody Apples
- Chapter 4Uploaded bymaustro
- PPFUploaded byreemmajzoub
- Chap 006Uploaded byMarielle Aria Santos
- c1_derap2.pdfUploaded bycarina
- Lecture 4Uploaded byjackaccyou
- ElasticityUploaded byHaniyaAngel
- Ch04Uploaded byEva
- Assignment Questions Assignment Question 1 This QuestionUploaded byhwcdk
- Price Elasticity on DemandUploaded byGouthamKrishnamurthy
- First Econs Essay EWUploaded byjamie
- UNIT 3 Market Eqilibrium_PART 2.pptxUploaded byRhea Tupan Prado

- A Quick Overview Of Project AccountingUploaded byNigel A.L. Brooks
- 2662Uploaded byjara
- BOPUploaded bySakthirama Vadivelu
- V1_20140410 FRM-2_questions.pdfUploaded byIon Vasile
- 60 انجليزى.pdfUploaded byMohamed Emara
- Assignment1.IfUploaded byArvind Ilamaran
- Econometrics HomeworkUploaded bykmbibireddy
- Marketing Management Project (Product Launch)Uploaded byArslan Ali
- World Blueberry Acreage and Production 2013Uploaded bySergio Eu Ca
- Justine Mae Madronal (1)Uploaded byJustineMaeMadroñal
- Report on Summer Training at Hero Cycles LtdUploaded bymohitshukla
- Airnguru-revenue-management.pdfUploaded byShivam Verma
- Project Report 1Uploaded bysarvajith
- Lipkin OptionsUploaded byAbhishek Anand
- Presentation on ZakahUploaded byhelperforeu
- Three Lesson Plans by Michael RuchUploaded byCristy Nunes Villanueva
- Assignment EthicsUploaded bylyn
- IAS2Uploaded byPat Lozano
- Module 2 HW SolutionsUploaded byJeff Mercer
- AfmUploaded bycf34
- Yamaha Strategy in VietNamUploaded byLinh Jan
- P&G_case_briefUploaded byMauhik Thakkar
- Internship report on British American Tobacco BangladeshUploaded byDilruba Akter Duly
- DigestsUploaded byKimi Miki
- Test Bank - Chapter12 Segment ReportingUploaded byAiko E. Lara
- Infor Order Form Farmaco QuimicaUploaded bycholo_latole
- 5 2 11 Balancing ActUploaded byThe Gold Speculator
- Exercise Managerial Economics - Angewandte WirtschaftstheorieUploaded byDietmar Lengauer
- 3311Class11GSUploaded bykatharine1981
- Issue managementUploaded bySiddhu Sadham