price elasticity of demand for a product is unit 1 a consumer buy 25 unit at the price of the rices buy -2 how much quantity of the consumer is product
Answers
Answer:
Studying elasticities is useful for a number of reasons, pricing being most important. Let’s explore how elasticity relates to revenue and pricing, both in the long and short run. First, let’s look at the elasticities of some common goods and services.
Table shows a selection of demand elasticities for different goods and services drawn from a variety of different studies by economists, listed in order of increasing elasticity.
Goods and Services Elasticity of Price
Housing 0.12
Transatlantic air travel (economy class) 0.12
Rail transit (rush hour) 0.15
Electricity 0.20
Taxi cabs 0.22
Gasoline 0.35
Transatlantic air travel (first class) 0.40
Wine 0.55
Beef 0.59
Transatlantic air travel (business class) 0.62
Kitchen and household appliances 0.63
Cable TV (basic rural) 0.69
Chicken 0.64
Soft drinks 0.70
Beer 0.80
New vehicle 0.87
Rail transit (off-peak) 1.00
Computer 1.44
Cable TV (basic urban) 1.51
Explanation: