FAQ: Which Of The Following Reasons Explain The High Prices Of Antiques:?

Which of the following is a determinant of the price elasticity of demand for a product?

There are several factors that affect how elastic (or inelastic) the price elasticity of demand is, such as the availability of substitutes, the timeframe, the share of income, whether a good is a luxury vs. a necessity, and how narrowly the market is defined. We explore each of these in this video.

Which of the following are the main sources of gold price fluctuations?

Which of the following are the main sources of gold price fluctuations? shifts in demand; highly inelastic supply; How is total revenue calculated?

What type of demand is represented by a small change in price that leads to a large change in the quantity demanded?

An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied. A unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.

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Which of the following measures the responsiveness of consumers to changes in price?

The price elasticity of demand (PED) captures how price -sensitive consumers are for a given product or service by measuring the responsiveness of quantity demanded to changes in the good’s own price.

What are price determinants?

There are many factors influencing pricing decisions which Tanner & Raymond (2012) groups into four as follows: customer’s ability to pay, competitors, quality of the product, as well as product costs.

Which determinant is the most important?

The most important determinant of consumer spending is disposable income. If consumers have more income, they will spend more, and aggregate demand will increase. When the economy slows down and consumers have less disposable income, they will spend less, and aggregate demand decreases.

Will gold prices fall?

Gold futures in Indian markets ended 0.44% lower at ₹47560 per 10 gram on Friday but for the week posted marginal gains of about ₹200.

Will gold price go down in 2020?

Despite the stellar run in calendar year 2020 (CY20), gold remains an attractive investment for 2021 with prices likely to inch up further in the new year, say analysts. Investors, they believe, will be better off staying put in the yellow metal for now.

What happens to gold during inflation?

As a result, gold is often seen as a hedge against inflation. Inflation is when prices rise, and by the same token prices rise as the value of the dollar falls. As inflation ratchets up, so too does the price of gold.

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What is an example of quantity demanded?

An Example of Quantity Demanded Say, for example, at the price of $5 per hot dog, consumers buy two hot dogs per day; the quantity demanded is two. If vendors decide to increase the price of a hot dog to $6, then consumers only purchase one hot dog per day.

What is the difference between change in demand and quantity demanded?

A change in demand means that the entire demand curve shifts either left or right. A change in quantity demanded refers to a movement along the demand curve, which is caused only by a chance in price.

What happens when elasticity is 0?

If elasticity = 0, then it is said to be ‘perfectly’ inelastic, meaning its demand will remain unchanged at any price.

What is an example of a perfectly elastic good?

Examples of perfectly elastic products are luxury products such as jewels, gold, and high-end cars.

Why is ped negative?

The value of Price Elasticity of Demand ( PED ) is always negative, i.e. price and demand have an inverse relationship. This is because the ratio of changes of the two variables is in opposite directions, so if the price goes up, demand goes down and the change will end up negative.

How do you calculate yed?

The formula for calculating income elasticity of demand is the percent change in quantity demanded divided by the percent change in income. With income elasticity of demand, you can tell if a particular good represents a necessity or a luxury.

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