Interesting Economic Questions And Explanations

What do supply and demand elasticities mean?Price elasticity of demand is how economists measure the responsiveness of qualities demanded to change in price. So, elastic demand means that the quantity demanded respond move than proportionately to changes in prices. Otherwise, elastic demand means the quantities demanded respond less than proportionately to change in price. For example, the brand of the laptop and another desktop products, the laptop's price rises 20%, then the laptop computer number decreases 40% in the year. The brand of another desktop's price also rises 20%, then the desktop customer number decreases only 10% in the year.So, the brand of laptops have high elastic demand move than its desktop, due to they increase 20% price in the year, but laptop customer number reduces 40% of double its raising price . Otherwise, its desktop price raises 20%, but desktop customer number only reduces 10% in the year. So, its desktop has inelastic demand. So, the computer manufacturer may to gather its price variable data to analyze whether how many computer customer number will be influenced by its desktop and laptop computers' price variable factor.Price elasticity of supply is determined by the following time frames. The more time a producer has to adjust output the more elastic is supply. They include market period, short run and long run.Income elasticity of demand measures the responsiveness of the quantity demanded of a commodity to change in consumer' incomes. For example, the person's income rises 50% in the year, then he will plan to buy a new car in the year, but if his income only increases 1% to 49% in this year. He won't plan to buy a new car in this year. So, any car manufacturers need consider to fall down their new car price to persuade this person to choose to buy their cars, when this person's income level increasing percentage can not reach 50% in minimum.Also, it implies this person will have high income elastic to influence his new car purchase decision. It means that he won't decide to buy any new car if his employer can not increase salary and the salary increasing level needs to reach 50% in minimum. So, these two requirement can not achieve, then he won't buy any new car. So, increasing income level will be one important factor to influence this person's new car purchase desire in this year.