Television brand will cause economic problem when the economy changes.
The television brand like the LCD-TV could cause that relates to the demand and supply is elasticity.
It could cause economic problem with the price increase in new models.
The elasticity is the measurement to study on the changing of an economic variable that
will affect others like the supplier sell his product at a low price,
how much more he must sell or sell at the high price,
how much less he must sell.
The demand side had the price elasticity of demand is a
units free measure of responsiveness of
the quantity demanded of a good to a change of price
when others buying plans are the same.
There are three types of elasticity demand
- perfectly inelastic demand
- unit elastic demand
- perfectly elastic demand.
For television brand
it is a perfectly inelastic demand and elastic demand
the concept means that there are no changes in the quantities even as
the price increases or decreases also had no price range.
Example, the Samsung LCD-TV is a one of a kind smart television that
had voice control and touch screen and no matter if the price increase or decrease next year
the quantity will never change no matter how many time the consumer buy.
The graph shows how the perfectly inelastic demand works and like if the price of the television had increase to the prize of twenty, the quantity will remain at four units.This had shows that the elasticity of demand is zero.
The graph shows how the unit elastic demand works, it shows that change in the quantity demanded is equal to percentage changes in the price. Like, the quantity is drop to the two units, it causes by the change of the price. The price elasticity is equal to one.
There are factors that influence the elasticity of demand could cause economic problem. There is the factor of the closes of substitutes mean that the product that had a closet substitute the more elastic the demand could be. This means that if there is a substitute for a product, people will demand it more.
Written by : Teh Li Wei
Thanks for your blog and sharing. Very nice =)
ReplyDeleteThank you for your kindly comment :)
Deletewhat are the examples of perfectly elastic goods?
ReplyDeleteLuxuries goods are one of the examples of perfectly elastic. When the price increase, the quantity demanded will become zero. It is because customers are sensitive to the price the the goods.
DeleteThanks for your sharing and information ! it's nice :D :D
ReplyDeleteThanks for your kindly comment :)
Deletethx for ur kindly sharing =)
ReplyDeleteThanks you for visiting and your kindly comment :)
Delete