Explain why both the pes and ped tend to be inelastic, Microeconomics

Assignment Help:

Explain why both the PES and PED tend to be inelastic in the short run for primary goods.

PED deals with (primarily) the ability and propensity of consumers to switch to other goods, which in turn deal with the availability of substitutes, the amount spent on the good and how income sensitive the good is. Taken together, in the SR, consumers are rather unwilling to switch to other goods when it comes to primary commodities, as are firms, which use such goods as factor inputs. PES deals with the availability and ease of switching to supplier substitutes, which in the SR is rather complex for commodity goods - because of seasonality of agricultural goods and the heavy investment often seen in mining for minerals.

 


Related Discussions:- Explain why both the pes and ped tend to be inelastic

Ridge line., what is aridge line and significance in economics.

what is aridge line and significance in economics.

122, 0.767 g of phosphorus and 0.650 g of chlorine were allowed to react. A...

0.767 g of phosphorus and 0.650 g of chlorine were allowed to react. After the reaction was complete, all of the chlorine had been consumed, but 0.650 g of phosphorus remained. How

Recent development in demand analysis, RECENT DEVELOPMENT IN DEMAND ANALYSI...

RECENT DEVELOPMENT IN DEMAND ANALYSIS: For many years economic theorists analysed the optimal behaviour of consumers while econometricians estimated consumer demand and expend

Van der Waal''s Equation , Deviation from ideal gas behavior The Van der Wa...

Deviation from ideal gas behavior The Van der Waal''s Equation This is observed, deviations from gas laws are high under high pressures & low temperatures. The Van der Waal suggest

Summary of common property resource management , Normal 0 false...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Production, who is a rational producer?

who is a rational producer?

The demand for big macs, Ask question #Min1) Illustrate and explain the cha...

Ask question #Min1) Illustrate and explain the changing demand for big Mac using the indifference curve and budget line.imum 100 words accepted#

Demand, brife note on demand

brife note on demand

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