explain the factors affecting price elasticity of demand - economics - the theory of the firm under perfect competition
explain the factors affecting price elasticity of demand
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its relatively price inelastic because, its almost a necessity, and by definition, necessities are said to be price inelastic. price elasticity of demand is -3price is rs 10quantity is 100 unitschange in price is 50%ed = p/q *change in q/change in p-3 = 10/100 * change in q / 50-3 = change in q/500change in q = 500*3 = 1500 an increase in the input price will lead to a decrease in the supply and no change in the quantity demanded.the following figure explains how an increase in the input price would affect the equilibrium price and equilibrium quantity.a. the market supply falls with the increase in the input prices.b. this leads to a leftward shift in the supply curve from s2 to s1.c. at the initial price op1, excess demand of q1-q1'.d. this excess demand implies that some consumers will have to pay a higher price to purchase the extra units of output.e. the rise in the market price will continue until it reaches op2.f. at op2, the new supply curve s2 intersects the initial market demand curve d1 at e2.g. e2 if the new equilibrium, op2 is the new equilibrium price, and oq2 is the new equilibrium output.h. at the new equilibrium, the price has increased and the quantity has fallen. the following are the forces which are responsible for increasing the concern of business enterprises for social responsibility.
(a) threat of public regulation: the interest of general public is to be safeguarded by the government. thus, if a business is not socially morale towards society, then it can regulate the operations of that enterprise accordingly.
(b) pressure of labour movement: the increase in capital mobility over time has increased the pressure on business enterprises to pay attention to the welfare of workers, by providing them with healthy working conditions along with good remuneration.
(c) impact of consumer consciousness: consumers education has led to a change in the mindset as consumers today are aware of their rights and responsibilities. therefore, business enterprises need to be more efficient and productive to satisfy their customers.
(d) development of social standards: business these days are not just profit oriented. for their long-term survival and growth, they need to fulfil the new standards of social welfare.
(e) development of business education: the spread of education over time has made consumers, investors, employees and owners more of social problems, thereby making them more sensitive to social issues.
(f) relationship between social interest and business interest: there is a need to maintain the correct balance between social and business interest. profitability and social responsibility go hand in hand. no business enterprise can work in isolation from society and can grow by doing the maximum good to society.
(g) development of a professional managerial class: the core objective of profit maximization was a traditional aspect. but today’s professional managers make efforts to satisfy the interests of all members of society. aggregate supply indicates the total amount of goods and services produced within an economy at a given the general (or overall) price level during an accounting period. `as = f(barn,barl,bark,bart)` where,as = aggregate supplyn = natural resourcesl = labourk = stock of capitalt = state of technologynatural resources: natural resources include the gifts of nature such as fertile land, weather conditions, adequate rainfall, flora and fauna, perennial rivers etc. the abundant availability of all these factors act in favour of production. the aggregate supply of a country bestowed with these natural resources will be higher and vice-versa.labour: availability of skilled and motivated labour is another determinant of supply. the supply in an economy with abundance of skilled labour will be high and vice-versa.capital: capital is essential in the production process. capital helps in acquiring raw materials, equipments, plant and machinery, buildings etc. which are essential for increasing the production. greater the stock of capital, greater would be the level of output and production. state of technology: the state of technology in an economy decides the level of supply. advanced technology helps in improving the production efficiency in a a country. with better and advanced technology production can be increased while reducing the cost of production. this in turn positively affects the supply. thus, the availability of modern and advanced technology helps in increasing the supply. 1. according to kinetic theory of ideal gases, molecules of a gas are in incessant random motion, colliding against each other and with the walls of the container. all these collisions are perfectly elastic collision.2. in perfectly elastic collision, total kinetic energy of gas is conserved.3. here, we have a mixture of oxygen and hydrogen gas. thereforek.e of oxygen + k.e of hydrogen=constant4. so, if kinetic energy of oxygen molecules increases, then kinetic energy of hydrogen molecules decreases or vice-versa so that, sum of both kinetic energies remains constant.5. therefore, both option (c) and (d) are correct. The physical and chemical properties of elements depend on the number of valence electrons. Elements present in the same group have the same number of valence electrons. Therefore, elements present in the same group have similar physical and chemical properties. An increase in the level of production of goods and services (national income) of a country over a certain period of time is referred to as economic growth. Higher level of investment in education sector would lead to higher proportion of educated people working with higher participation in economic activities and, therefore, would lead to higher economic growth. The following are the various ways in which investment in education stimulates economic growth: 

**(i) Imparts Quality Skills and Knowledge**: Education endows people with quality skills and, thereby, enhances their productivity. Consequently, it enhances the income earning capacities of and opportunities for the people. Moreover, it also enables the human capital to utilize the available physical capital optimally. 

**(ii) Develops Mental Abilities**: Education develops the mental abilities of people and helps them to make their choice rationally and intellectually. Education churns out good citizens by inculcating values in them.  

**(iii) Acceptability of Modernization**: An educated public of a nation has greater acceptability of modernization and modern techniques. This not only helps the economy to grow but also facilitates a primitive economy to break the shackles of tradition and backwardness.  

**(iv) Eradicates Skewed Income Distribution**: Education not only increases the income  earning capacity but also reduces the skewed distribution of income, thereby, forms an egalitarian society.  

**(v) Raises Standard and Quality of Living**: Education enhances the income earning capacity of the people, thereby; it raises the standard of living and also improves the quality of living.  

**(vi) Increases the Participation Rate**: It fosters economic development by increasing the participation of people in the process of growth and development.  

**(vii) One Solution for Other Economic** **Problems**: The importance of education is not only limited to making people educated But also in facilitating an underdeveloped economy to solve different but interrelated macro economic problems like poverty, income inequality, population, investments, under utilization of resources. allow private companies to compete with all govenrment services. its that simple.

when a govenrment monopoly is in place, there is no reason or mechanism for the corruption to go away.

in a free market, corruption leads to losses, so it provides incentive for the business to fire and prosecute those who are corrupt.

take the government monopoly on police protection for example. what happens to police who do not respond to a robbery? what happens to reports of police beatings and theft? often nothing. there is no incentive for anything to be done. on the other hand, in a free market, every instance would be investigated and reparations paid for mistakes, else competition will have a chance of providing the service instead.

also consider this. government programs benefit from losses. it allows them to request budget increases, or power increases. inefficiency is rewarded in government, the opposite of what is rewarded in a free market. saying that, corruption assists government as it helps to drive up costs of operation.

*corruption in society is a problem? society, or the people do not have the power to imprison you, or tax you. you are not forced to fund private citizens who are 'corrupt'. coefficient of friction is defined as the ratio of the force of friction acting between two objects and the force which is pushing them together. the value of the coefficient of friction varies from zero to one. there are two types of the coefficient of friction: static coefficient of friction kinetic (also known as sliding) coefficient of friction. therefore, the coefficient of friction depends on the nature of the surface.