Significance of Elasticity of demand:1. Price discrimination:
When the demand for a product has dissimilar elasticity’s in various markets, then the monopolist can fix various prices in various markets. This price discrimination is only possible due to distinct price elasticity.2. Levy of taxes:
The government will obtain higher revenue when tax is raised on goods containing inelastic demand. On the contrary, the government will obtain lower revenue when tax is raised on goods containing elastic demand.3. International Trade:
Terms of trade refer to the rate at which the domestic commodities are swapped for foreign commodities. The terms of trade will be favorable to a country when its exports take pleasure in inelastic demand in global market.4. Determination of volume of output:
Volume of goods and services should be generated in accordance with the demand for commodity. Whenever the demand is inelastic, the producer will generate more goods to take the benefit of higher prices. Therefore the nature of elastic and inelastic demand aids in the determination of the volume of yield.5. Fixation of wages for laborers:
When the demand for workers is inelastic, hard work of trade unions to increase earnings of the workers will be booming. On other hand, when the demand for labor is elastic, they might not succeed in raising the salary rate by trade union activity.6. Poverty in the midst of plenty:
The notion of elasticity of demand elucidates the paradox of poverty that is, poverty in the midst of abundance. For illustration, bumper crop of food grains must bring agricultural prosperity however when the demand for food grains is inelastic, the agriculturist will be the loser when low price is compensated.
Latest technology based Economics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Theory of Demand help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Theory of Demand, project ideas and tutorials. We provide email based Theory of Demand help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Theory of Demand. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Theory of Demand. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com hormonal methods assignment help-homework help by online contraception tutors
tutorsglobe.com forms of corolla assignment help-homework help by online corolla tutors
blu-ray disc official abbreviated form of it is bd is an optical disc storage medium designed to supersede the standard dvd format.
www.tutorsglobe.com offers Organisation and Refinement homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
www.tutorsglobe.com offers Preparation for Budgetary Control homework help, assignment help, case study, writing homework help, online tutoring assistance by accounting tutors.
tutorsglobe.com modern concept of natural selection assignment help-homework help by online theories of evolution tutors
tutorsglobe.com oil plant–groundnut assignment help-homework help by online economic importance tutors
tutorsglobe.com cholesterol biosynthesis assignment help-homework help by online lipid metabolism tutors
tutorsglobe.com distinguishing features of fungi assignment help-homework help by online fungi tutors
Polyethylene tutorial all along with the key concepts of Classification of Polyethylene, High density polyethylene, Low density polyethylene, Linear low density polyethylene, Production process of Polyethylene, Production process of Polyethylene, High-low pressure production process
www.tutorsglobe.com offers cohesion homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
tutorsglobe.com double fertilization assignment help-homework help by online reproduction biology tutors
tutorsglobe.com significance of photosynthesis assignment help-homework help by online photosynthesis tutors
www.tutorsglobe.com offers Hour to Hour or 100% Bonus Plan homework help, assignment help, case study, writing homework help, online tutoring assistance by accounting tutors.
tutorsglobe.com rainwater harvest through bore wells assignment help-homework help by online collection of rainwater from terrace tutors
1950476
Questions Asked
3689
Tutors
1451582
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!