demand elasticity

In 1993, economists made the first known demand elasticity estimates for the natural Christmas tree market.

As noted elsewhere, it is the relevant supply and demand elasticities that matter.

Basically, the decision involves management's perception of demand elasticity and competitive conditions.

These development patterns encourage automobile dependency which contributes to the high long-term demand elasticities of road expansion.

Estimates of the demand elasticity in this market vary, but generally fall in the range of -0.3 to -0.1.

This "Bennett hypothesis" claims that readily available loans allow schools to increase tuition prices without regard to demand elasticity.

Any accurate allocation involves the knowledge of the supply and demand elasticities that drive the welfare cost calculation formulas (see chapter 7).

For example, export demand elasticities specify by how much export volumes might fall if export prices went up.

Furthermore, many economists have noted an important pitfall in the use of demand elasticities when inferring both the market power and the relevant market.

Irwin looked at historical data to estimate import demand elasticities, and export supply elasticities for the United States in the years before 1888.

Gerald Godshaw, the principal researcher, noted that this "demand elasticity" might be considerably larger if higher prices were shown to deter new users.

The direction of the correction depends on whether the demand elasticity,, is greater or less than the elasticity of factor substitution in the corporate sector.

Frisch, Ragnar (1959) "A complete scheme for computing all direct and cross demand elasticities in a model with many sectors".

Municipal water demand elasticity is also difficult to measure because historically municipal water is under-priced and set at the long-run marginal cost of supply.

The Lerner Index measures potential monopoly power as mark-up of price over marginal cost divided by price or equivalently the negative inverse of demand elasticity.

An alternative method for applying the SSNIP test where demand elasticities cannot be estimated, involves estimating the "critical loss."

We have the normal monopoly formula: where C represents a particular value for marginal and average costs and"I the absolute value of demand elasticity, invariant with i.

For example assume that there are 80 firms in the industry and that the demand elasticity for industry is -1.0 and the price elasticity of supply is 3.

The former depend for their structure upon the costs of alternative means of supply, whereas the latter, as we have seen, depend upon marginal costs and upon demand elasticities.

A 1993 paper by George C. Davis and Michael K. Wohlgenant made what was, at the time, the only known estimated demand elasticities for the natural Christmas tree market.

Using the results of empirical estimates derived from the survey the elasticity formula was used to arrive at the first known demand elasticity estimates ever completed for the natural Christmas tree market.

The rebound effect will usually be larger if energy costs make up a large share of the total costs of a given product or its consumption, and will also depend on demand elasticities.

Many of the medical apps have one or more of these characteristics, and there's not a lot of demand elasticity in relation to price in this particular niche, provided they aren't absurdly high.

Export Demand Elasticities of Pakistan's Jute Trade K H Imam, Bulletin of the Oxford University, Institute of Economics and Statistics, Vol.

Kleiman notes that the demand elasticity for heroin is relatively high compared to those of marijuana and cocaine, and this partially explains the success of enforcement efforts against the first drug rather than the latter two.