Definition Of ‘demand Elasticity’

Definition of ‘Demand Elasticity’ . In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. Demand elasticity is important because it helps firms model the potential change in demand due to changes in price of the good, the effect of changes in prices of other goods and many other important market factors. A firm grasp of demand elasticity helps to guide firms toward more optimal competitive behavior. Elasticities greater than one are called “elastic,” elasticities less than one are “inelastic,” and elasticities equal to one are “unit elastic.”  . Investopedia explains ‘Demand Elasticity’ . Demand elasticity is a measure of how much the quantity demanded will change if another factor changes. One example is the price elasticity of demand; this measures how the quantity demanded changes with price. This is important for setting prices so as to maximize profit.  When price elasticity of demand is elastic, the firm should lower prices, since it will result in a big uptick in demand, increasing your total revenue. When price elasticity of demand is inelastic, you should increase prices because there will be only a small decrease in demand, and again, total revenue will increase. When price elasticity of demand is unit elastic, changing the price will not change total revenue, since price and quantity will generally change in lock step with each other.  Invest Like Industry Experts Want to know the most Well-Worn Secrets to Investment Success? Start building your financial knowledge with Investopedia’s FREE Investing Basics newsletter. Click here to get started, and learn what makes the industry experts successful. . Price elasticity of demand (PED) . Price elasticity of demand (PED) shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on...

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Cultural Analysis Of Japan And Germany

. . . . .                                                               REPORT . .              Topic: Cultural analysis of Japan and Germany . . . . . . . . . Submitted by,                                                                                                                Arya Suresh 4149245 Wednesday Batch . . . . . . . Executive Summary . This report provides an analysis and evaluation of various cultural dimensions mainly Hofstede’s cultural dimensions, Edward.T.Hall’s cultural dimensions, Trompenaars cultural dimensions and the various negotiation styles of Japanese and German in the workplace. It is important in the 21st century to study and analyze the various cultural profiles before entering the foreign country. Many of the managers who go to foreign county and fails in their mission is because they are not giving importance and giving emphasis for studying other’s culture. While doing a business in other countries managers should be aware of political, economical, technological as well as cultural arena of the country especially in communication context. . In the first section, it analyses various Hofstede’s dimensions such as power distance, uncertainty avoidance, the extent of individualistic dimension and masculinity for both Japan and Germany, From all of these analysis the findings is that Germany is a low power distance country whereas Japan scores in between, in the case of uncertainty avoidance, Japan scores the highest and German score is low when compared to Japan. Japan is one of the highest masculine cultures of the world whereas Germany is more of feminine values when compared to Japan. In case of individualism, Japan is following a collectivistic culture where Germany is more towards individualistic one. . In the second section of Trompenaars dimensions, Japan is a particularistic society with neutral emotional orientation, specific in their relationships and the followers of ascription based culture. . In the third section of Hall’s cultural dimensions, Japan is a user of...

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Creative Way Of Product Diffusion

Creative way of product diffusion Chapter: 1 Introduction: Social networking sites provides personal link to the world outside with your friends, contacts or even with the whole internet population. It is the internet community where people indulge in various activities like exchange of message, publicising of upcoming events and activities and the uploading and accessing of photos, music and videos. Social networking sites (SNSs) become popular not because of common location but because of common interest. Many of the users of SNSs integrate these sites into their daily practice (Webb, Burqoyne, 2009). Online social networks over the last decade have attracted an increase proportion of internet users. A study was conducted in US by eMarketer Williamson,(2009) and he found that in 80 million internet users 41% of users visited a social network website at least once a month in 2008, this is an increase of 11% from 2007 (Garg…[et al.]. 2009). Since after the introduction of SNSs such as MySpace, Face book, Cyworld and Bebo, many other SNSs started with various technological affordances and supporting wide range of interest and practices. Even though their technical aspect is same the culture of the site is different in one another. SNSs not only allow the users to meet strangers but also communicating with the people who are already a part of their extended social network (Boyd, Ellison, 2007). Social networking sites are defined as Internet based service which allows users to construct public or semi- public profile within the bounded system, communicate with other users in the network and can interchange the list of contacts within the system. Each site varies in their nature and nomenclature (Boyd, Ellison, 2007). SixDegrees.com is the first recognizable social network site launched in 1997. From 1997 to 2001, a number of SNSs launched with various changes...

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