Question

the concept of elasticity for demand is important for determining the price for the various factor of production

Answer 1

Answer:

The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.

Answer 2

The concept of elasticity for demand is determining the price of production.

Explanation:

• The concept of elasticity of demand is said to be elastic when a small change in the prices cause the people to rise or lower their demands. The demand can become inelastic of small changes lead to changes in demand for that good.

• There are various factors that affect the price elasticity of demand. Such as the number of closed substitutes, cost of switching between two products, the degree of necessity of whether the good is a luxury of basic item. Time processes that allow the prices to change.  

• This concept helps in demand forecasting, price determination, and helps to determine the government policies. Helpful in adopting the policy of protection.

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• brainly.in/question/16553579 answered by  Adityaanand20.