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Point elasticity is useful for which of the following situations?
- a)The bookstore is considering doubling the price of notebooks.
- b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.
- c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.
- d)None of the above.
Correct answer is option 'C'. Can you explain this answer?
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Point elasticity is useful for which of the following situations?a)The...
Point Elasticity and its Application
Point elasticity is a measure of the responsiveness of demand for a product or service to a change in its price at a specific point on the demand curve. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
Application of Point Elasticity
Point elasticity is useful for determining the impact of a change in price on demand for a product or service. It is particularly useful in the following situations:
1. An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100. In this case, point elasticity can be used to determine how much the quantity demanded of cars will increase as a result of the price reduction.
2. Point elasticity can also be used to determine the impact of a price increase on demand for a product or service. For example, if a bookstore is considering doubling the price of notebooks, point elasticity can be used to determine how much the quantity demanded of notebooks will decrease as a result of the price increase.
3. Point elasticity can also be used to determine the impact of a change in price on different types of products or services. For example, a restaurant may be considering lowering the price of its most expensive dishes by 50 percent. Point elasticity can be used to determine how much the quantity demanded of these dishes will increase as a result of the price reduction.
Conclusion
Point elasticity is a useful tool for determining the impact of a change in price on demand for a product or service. It can be used in a variety of situations, including determining the impact of price changes on demand, and for comparing the impact of price changes on different types of products or services.
Point elasticity is a measure of the responsiveness of demand for a product or service to a change in its price at a specific point on the demand curve. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
Application of Point Elasticity
Point elasticity is useful for determining the impact of a change in price on demand for a product or service. It is particularly useful in the following situations:
1. An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100. In this case, point elasticity can be used to determine how much the quantity demanded of cars will increase as a result of the price reduction.
2. Point elasticity can also be used to determine the impact of a price increase on demand for a product or service. For example, if a bookstore is considering doubling the price of notebooks, point elasticity can be used to determine how much the quantity demanded of notebooks will decrease as a result of the price increase.
3. Point elasticity can also be used to determine the impact of a change in price on different types of products or services. For example, a restaurant may be considering lowering the price of its most expensive dishes by 50 percent. Point elasticity can be used to determine how much the quantity demanded of these dishes will increase as a result of the price reduction.
Conclusion
Point elasticity is a useful tool for determining the impact of a change in price on demand for a product or service. It can be used in a variety of situations, including determining the impact of price changes on demand, and for comparing the impact of price changes on different types of products or services.
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Point elasticity is useful for which of the following situations?a)The...
Point elasticity is useful for small change in price or quantity demand.So in the above options ,option C is correct as the auto producer is interested to determine the response of consumers with a small change in price of cars that is Rs. 100 which is very smaller when compared to the price of car.
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Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer?
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Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer?.
Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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ample number of questions to practice Point elasticity is useful for which of the following situations?a)The bookstore is considering doubling the price of notebooks.b)A restaurant is considering lowering the price of its most expensive dishes by 50 percent.c)An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.d)None of the above.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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