The idea of Elasticity of Demand and Supply is very important to Government as well as Businesses. Often Government would like to predict what will happen to particular sectors in an economy, or to who will end up bearing the burden of a tax on a good or what size of a tax will be enough to reduce the consumption of 'demerit' goods - considered harmful or demoralizing. On the other hand, Firms need to predict how revenues will be affected as a result of changes in prices, or whether or not to charge a higher or lower price to a given market to increase revenues, or decide whether or not to invest in the production of a particular good. This builds on the theory of demand and supply. Please watch and share with as many students preparing for the W.A.S.S.C.E or other university entrance examinations as possible.
Economics for W.A.S.S.C.E: The Elasticity of Demand and Supply
The idea of Elasticity of Demand and Supply is very important to Government as well as Businesses. Often Government would like to predict what will happen to particular sectors in an economy, or to who will end up bearing the burden of a tax on a good or what size of a tax will be enough to reduce the consumption of 'demerit' goods - considered harmful or demoralizing. On the other hand, Firms need to predict how revenues will be affected as a result of changes in prices, or whether or not to charge a higher or lower price to a given market to increase revenues, or decide whether or not to invest in the production of a particular good. This builds on the theory of demand and supply. Please watch and share with as many students preparing for the W.A.S.S.C.E or other university entrance examinations as possible.
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