Login

Welcome, Guest. Please login or register.

March 30, 2024, 02:40:56 am

Author Topic: Elasticity  (Read 4927 times)  Share 

0 Members and 1 Guest are viewing this topic.

Odette.

  • Guest
Elasticity
« on: September 02, 2008, 09:35:45 pm »
0
Ok I'm having a little bit of trouble understanding the concept of Elasticity, any help would be appreciated xD Thanks.

costargh

  • Guest
Re: Elasticity
« Reply #1 on: September 02, 2008, 09:39:53 pm »
0
Yep
   Elasticity of demand refers to how responsive consumers are in reaction to a change in price. Inelastic demand means that a large change in price will only cause a marginal decrease in the amount of a good/service demanded. Elastic demand means that a small change in price will lead to a large decrease in the quantity of a good/service demanded. Factors that affect demand elasticity are:
•   Whether the purchased is perceived to be urgent or whether it can wait and alternatives can be found.
•   Cost and availability of substitute goods.
•   The percentage of income which is spent on that good or service (an expensive good will be more elastic)
•   Whether the good is perceived as being either a necessity or a luxury

   Elasticity of supply refers to the responsiveness of suppliers to a change in price. Inelastic supply means that a large change in price will lead to a minimal change in the quantity of a good/service produced. Elastic supply means that a small change in price will lead to a large change in the quantity of goods/services produced. Factors that affect elasticity of supply are:
•   The ability to store.
•   The mobility of resources.
•   Producer expectations.

Also see here,
http://economics.mrwood.com.au/unit1/mm/mm11.asp

Odette.

  • Guest
Re: Elasticity
« Reply #2 on: September 02, 2008, 09:44:05 pm »
0
Thanks Costargh ^_^ I kinda get it now :) (Didn't really grasp the concept because the lecturer kinda skimmed through it)

maine

  • Victorian
  • Forum Regular
  • **
  • Posts: 77
  • Mablecake
  • Respect: +1
Re: Elasticity
« Reply #3 on: July 07, 2009, 03:59:54 pm »
0
Gotta love mr wood
2008
Maths Methods CAS: 33=>40 =D
Legal studies: 33=> 31 =C
2009
English
Spesh
Chem
Economics
Accounting

Over9000

  • Victorian
  • Part of the furniture
  • *****
  • Posts: 1468
  • Loves the banter
  • Respect: +20
Re: Elasticity
« Reply #4 on: July 07, 2009, 04:37:34 pm »
0
F = kx where k is the constant of elasticity
Gundam 00 is SOOOOOOOOHHHHHHHHH GOOOOOOOOOOODDDDDDDDDDDD I cleaned my room

VCE 200n(where n is an element of y): Banter 3/4, Swagger 3/4, Fresh 3/4, Fly 3/4

xXNovaxX

  • Guest
Re: Elasticity
« Reply #5 on: August 30, 2009, 07:54:06 pm »
0
i HATE elasticity, we touched a little on it in VCE, it's such a difficult concept to grasp for ME because it isn't really sometihng u come across in ur day to day life.

maine

  • Victorian
  • Forum Regular
  • **
  • Posts: 77
  • Mablecake
  • Respect: +1
Re: Elasticity
« Reply #6 on: August 31, 2009, 02:50:12 pm »
0
i HATE elasticity, we touched a little on it in VCE, it's such a difficult concept to grasp for ME because it isn't really sometihng u come across in ur day to day life.
I beleive that it's easy to grasp: just think about the demand for video games opposed to bread, or oil. Think about how a price change in theese, would affect how many you would buy
2008
Maths Methods CAS: 33=>40 =D
Legal studies: 33=> 31 =C
2009
English
Spesh
Chem
Economics
Accounting

AppleXY

  • Life cannot be Delta Hedged.
  • Victorian
  • ATAR Notes Superstar
  • ******
  • Posts: 2619
  • Even when the bears bite, confidence never dies.
  • Respect: +16
Re: Elasticity
« Reply #7 on: August 31, 2009, 05:38:33 pm »
0
Elasticity = % Change in Quantity / % Change in Price


2009 - BBus (Econometrics/Economics&Fin) @ Monash


For Email: click here

Need a question answered? Merspi it!

[quote="Benjamin F