in equilibrium
Composite demand is a demand for a good that has many uses. An example is oil it is demanded as a fuel.
If the supply is less than the demand, there will be a shortage and price increase.
Cost plus pricing is "circular" for manufacturing firms. They estimate demand to determine fixed manufacturing costs per unit, so that they can mark up cost to obtain a price. However the price affects the quantity demanded, the higher the price the lower the demand. The fewer the units purchased the cost per unit will go up, increased the cost plus price, lowering the demand further.
demand
The answer choices for this question weren't provided. But the most important influence on supply is demand. Supply and demand is an economic model of price determination in a market.
When the percentage change in price is equal to the percentage change in quantity demanded then demand is said to be unit elastic. There are 3 kinds of price elasticity of demand.
Unit elastic
Elastic
a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve
Price elasticity of demand= percentage change in demand/percentage cgange in price 2 = % chnge in demand/10 % change in demand= 2*10 % change in demand= 20%
A change in quantity demanded
The response of the quantity demanded with a change in price.
Price elasticity of demand is the responsiveness of quantity demanded of a good to a change in its price.Basically it describes how consumers react to a price change.The price elasticity of demand is calculated byPED= %Quantity demanded : % Change of Priceor in words: the percentage change in the quantity demanded divided by the percentage change in price
A change in quantity demanded refers to the response of consumers to changes in the PRICES of commodities, ceteris paribus.>> Involves a movement along the demand curve A change in demand refers to an increase or decrease in demand brought about by a change in the conditions of non-price determinants.>> Involves a shift in the demand curve (to the left or right)
Decrease in quantity demanded usually results from an increase in price and vice versa. When the price of a product increases, the demand curve itself is not affected. However, the quantity demanded decreases to a higher point along the demand curve.
Elasticity of demand is the responsiveness of quantity demanded of a good or service to changes in the price. Elastic demand means that for a change in price, the change in quantity demanded is more than proportionate. So the cheaper the price gets (say 1 unit), the quantity demanded will increase improportionately (say 2 units).
by the formula : %changge in quantity demanded/% change in price of good