Question and answer
When decieding to lower a two bedroom apartment rent, explain how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.
Price elasticity, or people’s sensitivity to price changes, affects the demand for products. Think about a pair of sweatpants with an elastic waist. [ You can stretch an elastic waistband like the one in sweatpants, but it’s much more difficult to stretch the waistband of a pair of dress slacks. Elasticity refers to the amount of stretch or change. For example, the waistband of sweatpants may
stretch if you pull on it. Similarly, the demand for a product may change if the price changes. Imagine the price of a twelve-pack of sodas changing to $1.50 a pack. People are likely to buy a lot more soda at $1.50 per twelve-pack than they are at $4.50 per twelve-pack. Conversely, the waistband on a pair of dress slacks remains the same (doesn’t change) whether you pull on it or not. Likewise, demand for some products won’t change even if the price changes. The formula for calculating the price elasticity of demand is as follows. Price elasticity = percentage change in quantity demanded ÷ percentage change in price ]
Get an answer
Original conversation
User: How can the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

User: How can the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

User: When decieding to lower a two bedroom apartment rent, explain how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.

Weegy: Price elasticity, or people’s sensitivity to price changes, affects the demand for products. Think about a pair of sweatpants with an elastic waist. [ You can stretch an elastic waistband like the one in sweatpants, but it’s much more difficult to stretch the waistband of a pair of dress slacks. Elasticity refers to the amount of stretch or change. For example, the waistband of sweatpants may stretch if you pull on it. Similarly, the demand for a product may change if the price changes. Imagine the price of a twelve-pack of sodas changing to $1.50 a pack. People are likely to buy a lot more soda at $1.50 per twelve-pack than they are at $4.50 per twelve-pack. Conversely, the waistband on a pair of dress slacks remains the same (doesn’t change) whether you pull on it or not. Likewise, demand for some products won’t change even if the price changes. The formula for calculating the price elasticity of demand is as follows. Price elasticity = percentage change in quantity demanded ÷ percentage change in price ]
Expert answered|MrG|Points 1003|

Question
Asked 9/3/2012 5:49:16 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Indentify at least one shift of the supply curve and one shift of the demand curve in the simulation. What causes the shifts?
Weegy: The human rights- Viruses aren't living. They're only made of complex proteins and nucleic acids. Bacteria, Fungi and Parasites are living organisms. - Bacteria are unicellular microorganisms. [ [ Fungi and Parasites are multicellular (I think). - Fungi have cell walls made of chitin and they aren't animals. Parasites are animals. *Bacteria are also animals act ] ] (More)
Question
Expert Answered
Asked 8/31/2012 9:56:19 AM
0 Answers/Comments
Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic. User: Summarize microeconomics and macroeconomics principles. User: What is Macroeconomics ?
Weegy: Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes national, regional, and global economies. User: What are Microeconomics? Weegy: Hi, how can I help you? User: What are Microeconomics? Weegy: Hi, how can I help you? User: What is Microeconomics? Weegy: Hi, how can I help you? User: What are Microeconomics? Weegy: Microeconomics. The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. (More)
Question
Expert Answered
Asked 8/31/2012 9:27:38 AM
0 Answers/Comments
Once you lower the rent to meet the econmie deman, how would that effect the equilibrium price?
Weegy: When consumers increase the quantity demanded at a given price, it is referred to as an increase in demand. Increased demand can be represented on the graph as the curve being shifted to the right. [ At each price point, a greater quantity is demanded, as from the initial curve D1 to the new curve D2. In the diagram, this raises the equilibrium price from P1 to the higher P2. This raises the equilibrium quantity from Q1 to the higher Q2. A movement along the curve is described as a "change in the quantity demanded" to distinguish it from a "change in demand," that is, a shift of the curve. there has been an increase in demand which has caused an increase in (equilibrium) quantity. The increase in demand could also come from changing tastes and fashions, incomes, price changes in complementary and substitute goods, market expectations, and number of buyers. This would cause the entire demand curve to shift changing the equilibrium price and quantity. Note in the diagram that the shift of the demand curve, by causing a new equilibrium price to emerge, resulted in movement along the supply curve from the point (Q1, P1) to the point Q2, P2). If the demand decreases, then the opposite happens: a shift of the curve to the left. If the demand starts at D2, and decreases to D1, the equilibrium price will decrease, and the equilibrium quantity will also decrease. The quantity supplied at each price is the same as before the demand shift, reflecting the fact that the supply curve has not shifted; but the equilibrium quantity and price are different as a result of the change (shift) in demand. ] (More)
Question
Expert Answered
Asked 9/2/2012 4:32:01 PM
0 Answers/Comments
If there was a shift of the supply curve on lowering rent, what effect would it have on decision making?
Weegy: There would be increase in demand, which means decision making would be faster (More)
Question
Expert Answered
Asked 9/2/2012 5:08:03 PM
0 Answers/Comments
When decieding to lower the rent on a two bedroom apartment , explain how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.
Weegy: Price elasticity, or people?s sensitivity to price changes, affects the demand for products. Think about a pair of sweatpants with an elastic waist. [ [ You can stretch an elastic waistband like the one in sweatpants, but it?s much more difficult to stretch the waistband of a pair of dress slacks. Elasticity refers to the amount of stretch or change. For example, the waistband of sweatpants may stretch if you pull on it. Similarly, the demand for a product may change if the price changes. Imagine the price of a twelve-pack of sodas changing to $1.50 a pack. People are likely to buy a lot more soda at $1.50 per twelve-pack than they are at $4.50 per twelve-pack. Conversely, the waistband on a pair of dress slacks remains the same (doesn?t change) whether you pull on it or not. Likewise, demand for some products won?t change even if the price changes. The formula for calculating the price elasticity of demand is as follows. Price elasticity = percentage change in quantity demanded ? percentage change in price ] ] (More)
Question
Expert Answered
Asked 9/3/2012 6:06:00 PM
0 Answers/Comments
18,789,801 questions answered
Popular Conversations
Write the quadratic equation in general form. What is the value of b ...
Weegy: 8x + 3 = 7x - 2 8x - 7x = -2 - 3 x = -5 User: If (x + 1)(x - 3) = 5, then which of the following statements ...
12/18/2014 12:37:17 PM| 4 Answers
Which ordered pairs is the solution for the given system. x + 3y = ...
Weegy: A. (-1, 3) User: Solve the system, using substitution. 4x + y = 4 and y = 4 - 4x A. no ...
12/18/2014 11:09:21 AM| 3 Answers
Evaluate 0! + 1!.
Weegy: A number can not be divided by zero. The answer to 8/0 is undefined. User: Evaluate. 5!/5!2! Weegy: ...
12/18/2014 12:21:23 PM| 3 Answers
Which of the following does not provide evidence that continents ...
Weegy: B. The existence of glacial grooves does not provide evidence that continents move. User: The most ...
12/18/2014 12:29:01 PM| 3 Answers
Robert E. Lee
Weegy: Robert E. Lee was an American career military officer who is best known for having commanded the Confederate ...
12/18/2014 6:07:56 AM| 2 Answers
Stress is __________. A. positive or negative, depending on ...
Weegy: Stress is the body's automatic physical reaction to real or imagined forces. User: High blood pressure is a ...
12/18/2014 7:37:36 AM| 2 Answers
Which personal pronoun best completes the sentence? How is it used? ...
Weegy: The correct pronoun is: Us; predicate nominative. At first they wouldn't admit to the deed, but later they said, ...
12/18/2014 8:01:31 AM| 2 Answers
Find x if f(x) = 2x + 7 and f(x) = -1. -4 -3 5
Weegy: Substituting the x in the equation for -1 turns it into 2(-1) + 7, which equals -2 + 7 = 5. The answer is c. 5. ...
12/18/2014 9:14:15 AM| 2 Answers
Weegy Stuff
S
L
P
Points 1083 [Total 4927]| Ratings 0| Comments 1083| Invitations 0|Offline
S
L
Points 683 [Total 1374]| Ratings 1| Comments 673| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 641 [Total 14826]| Ratings 0| Comments 641| Invitations 0|Offline
S
Points 639 [Total 639]| Ratings 1| Comments 629| Invitations 0|Offline
S
P
C
L
P
L
1
Points 88 [Total 6407]| Ratings 1| Comments 78| Invitations 0|Offline
S
L
Points 68 [Total 1528]| Ratings 1| Comments 58| Invitations 0|Online
S
1
L
L
Points 33 [Total 6700]| Ratings 0| Comments 33| Invitations 0|Offline
S
Points 30 [Total 30]| Ratings 0| Comments 0| Invitations 3|Offline
S
Points 23 [Total 29]| Ratings 0| Comments 23| Invitations 0|Offline
S
Points 22 [Total 22]| Ratings 0| Comments 2| Invitations 2|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.