Makakuha ng maaasahan at pangkomunidad na mga sagot sa IDNStudy.com. Makakuha ng mabilis at eksaktong sagot sa iyong mga tanong mula sa aming mga eksperto na laging handang tumulong.
What is the relevance of elasticity of demand and supply?
the concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.
The concept of price elasticity of demand is important for formulating government policies, especially the taxation policy. Government can impose higher taxes on goods with inelastic demand, whereas, low rates of taxes are imposed on commodities with elastic demand.<3
Salamat sa iyong kontribusyon. Patuloy na magbahagi ng iyong karanasan at kaalaman. Ang iyong ambag ay napakahalaga sa aming komunidad. Sa IDNStudy.com, kami ay nangako na magbigay ng pinakamahusay na mga sagot. Salamat at sa muling pagkikita.
