economics office word

Jun 21st, 2015
Studypool Tutor
The University of Texas School of Health Professions
Price: $25 USD

Tutor description

Providing financial assistance and educational scholarships to low-income strata of India. To educate people about their legitimate rights, equity, justice, honesty, social sensitivity and culture of service in which they become self-reliant.

Word Count: 6021
Showing Page: 1/18
Practical importance of elasticity of demandElasticity of Demand :- " Elasticity of demand is the rate at which the quantity demanded changes with a change in price."In other words we can say that elasticity of demand is the relationship between the proportionate change in price and the proportionate change in quantity demanded.FORMULA : ED = Proportionate change in quantity demanded/Proportionate change in price.PRACTICAL IMPORTANCE OF ELASTICITY OF DEMAND This concept has a great practical importance in the sphere of government finance and in the commerce and trade due to the following reasons :1. IMPORTANCE FOR FINANCE MINISTER :- Before imposing the taxes finance minister has to keep in view the elasticity of demand of various goods. If the demand is inelastic, he can increases the tax and thus can collect large revenue.2. IMPORTANCE FOR THE MONOPOLIST :- If the monopolist finds that the demand for his product is inelastic, he will fix the price at a higher level, otherwise he will lower the price.3. FIXATION OF WAGES :- If a demand of labour is inelastic, it is easy to rise their wages otherwise not.4. INTERNATIONAL TRADE :- If the demand of commodity is inelastic then heavy duties can be imposed on its import heavy duties can be imposed on its import and export.5. IMPORTANCE FOR THE PRODUCER :- Producer will study elasticity of demand before fixing the price of his commodities. Secondly, If the demand for a commodity is inelastic the producer will

Review from student

Studypool Student
" excellent work as always thanks for the help "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors