Durability of the commodity, Microeconomics

Assignment Help:

Durability of the Commodity:

With some commodities, we require one at a time and they are used for a very long time before they get spoilt. Examples of such goods are cars, televisions, furnitures, building, clothes etc. They tend to hve low elasticity of demand (inelastic demand) because when the price of a durable commodity changes, consumers will continue to use what the have.Even when the price of such a commodity falls, it is new consumers who will mostly buy them.

Luxuries and Necessities

Luxuries are things we can always do away with hence they tend to have elastic demand. Necessities are difficult to dispense with and they tend to have inelastic demand.


Related Discussions:- Durability of the commodity

The demand curve, The owner of the sole stage-theatre in the city of Vorder...

The owner of the sole stage-theatre in the city of Vordervilla has found through   experience that the cost of running his 600-seat theatre remains virtually the same irrespective

Economies of scale, what are the limitations of economies of scale?

what are the limitations of economies of scale?

International finance corporation, INTERNATIONAL FINANCE CORPORATION: ...

INTERNATIONAL FINANCE CORPORATION: The IBRD loans are available only to member-country governments or with the guarantee of member-country governments. Further, IBRD can only

Economics, #question.what is meant by ppc?illustrate the central problems o...

#question.what is meant by ppc?illustrate the central problems of aneconomy with this curve.

Slope of isoquent, Where the equation of isoquent drived from?

Where the equation of isoquent drived from?

Calculating maximum sales loss and net profit , The Healthy Spring Water co...

The Healthy Spring Water company sells bottled water for offices / homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2,000 bottles per day.

Theory of monopoly, Monopoly is that form of market where there is only one...

Monopoly is that form of market where there is only one firm producing a particular product. Being the sole supplier, the monopoly firm has the power to control prices and output t

Economy, What is the impact of microeconomics on economy?

What is the impact of microeconomics on economy?

Factors responsible for policy failures, FACTORS RESPONSIBLE FOR POLICY FAI...

FACTORS RESPONSIBLE FOR POLICY FAILURES: It is the subject of many official and academic studies to try and find out the reasons for the inability of many, in fact, most of th

Why have these economies converged, Why Have These Economies Converged? ...

Why Have These Economies Converged? By and large economies which have converged are those which belong to OECD: the Organization for Economic Cooperation and Development that w

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd