Question: Explain the concepts of elastic and inelastic demand. Why should managers understand these concepts?

Explain the concepts of elastic and inelastic demand. Why should managers understand these concepts?

Step by Step Solution

★★★★★

3.37 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Elasticity of demand refers to consumers responsiveness or sensitivity to changes ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

719-B-M-M-P (1869).docx

120 KBs Word File

Students Have Also Explored These Related Marketing Questions!

Q:

You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining prices and what products to supply, so you decide to...

Q:

Explain the difference between elastic and inelastic demand. Why are the two concepts important to transportation demand?

Q:

Explain the concepts of present value and future value.

Q:

please answer the second part (B) thank you 8. A. Explain the concepts of elastic and inelastic demand. Elastic demand is a situation in which consumer demand is sensitive to changes in price....

Q:

1.Why is pricing so important to the marketing manager? 2.How does price allocate goods and services? 3.Why do many firms not maximize profits? 4.Explain the role of supply and demand in determining...

Q:

Economics The following table below shows average household income, the price per liter of gasoline, the average price ofa vehicle, the number of vehicles sold and the amount of gasoline demanded for...

Q:

Describe social media, how they are used, and their relation to integrated marketing communications. Evaluate the various methods of measurement for social media. List and explain the different types...

Q:

Explain the concepts of elastic and inelastic demand. Why should managers understand these concepts

Q:

3. What is meant by the concept of derived demand? Why is it so important in the area of transportation for shippers and carriers? Does this concept have application in other area, give some...

Q:

3. What is meant by the concept of derived demand? Why is it so important in the area of transportation for shippers and carriers? Does this concept have application in other area, give some...

Q:

Telmex must borrow $25,000 million pesos (mp) to pay for an extension. You can't borrow all your money from one bank, so you borrow three from three different banks. The first charges 8% interest. In...

Q:

Each cell in a culture of 16 cells has a probability of 0.1 of dying. Find and approximate the probability that exactly one cell dies. In the above case, find the probability exactly with the...

Q:

Assume a project has normal cash flows and a positive ( non 0 ) NPV . The project's a . Profitability index will be less than one b . IRR will exceed its required rate of return c . Costs exceed its...

Q:

Evaluate each of the following statements: (a) Advertising costs the consumer millions of pounds every year. If advertising were eliminated, prices could be reduced and everybody would benefit. (b)...

Q:

Discuss how retailers and wholesalers add value to the marketing system. Explain why marketers are embracing the concept of shopper marketing.

Q:

Discuss the factors used to classify retail establishments and list the types within each classification.

Q:

List and briefly discuss the trends impacting the future of retailing.

Q:

Post-Assessment Question 25 According to MAP, a valid reason for requiring a repair or replacement is Select your answer and click "Submit." Part no longer performs its intended function Part no...

Q:

can someone help me out with this please Liabilities on the Balance sheet for each of the following situations, indicate the amount shown as a liability on the balance sheet of Kane, INC., at...

Q:

solve for C++ (10 points) Write a function, find, that accepts an array of integers, the number of elements in the array, and an integer value, and returns the position (index) of the value in the...