Before understanding the concept of cross price elasticity of demand we have to understand first the concepts of complementary and substitute goods or products. Complementary products are those products that have used with each other. Without one product other product has no use. These products must be in combination form, without one other is useless or have minimum use. In simple words, both products are dependent on each other. Like Pen and Ink etc. Substitute products are those products that have used instead of one another. Without one product other product is also useable. These products must not be in combination form, without one other have maximum or wide use. In simple words, both products are independent of each
In this article, we are going to provide a consumer surplus calculator, which will provide results on an automatic basis. Before approaching to consumer surplus calculator let us take an overview of consumer surplus. What is Consumer Surplus: An Overview In economics, the difference between the price that consumers actually pay and the maximum price they're willing to pay is the consumer surplus. You have probably seen curves describing supply (S) and demand (D) as a function of price (P) versus quantity (Q) if you have ever attended an economics lecture. If not, in the market surplus graph below, you can easily understand the notion. As a lower price implies a higher demand for a given article, the demand curve (D) is downward.
To make significant production decisions, businesses depend on multiple cost functions. In this article, we are going to discuss the average variable cost function, its uses for business decisions. Average Variable Cost Definition The TVC, total variable cost, per unit of output is known as the AVC, average variable cost. It can be found easily when the TVC, total variable cost, is divided by the total output (Q). TVC, total variable cost, is all the costs, such as materials and labor that vary with production. The best way to evaluate that variable cost is that if production increases so the cost increases as well. The AVC would be used by profit-maximizing companies to decide whether to continue their production or shut down it
The price elasticity of demand calculator measures the impact of price on quantity demanded. For example, if the price of an apple is 3$ and its quantity demanded is 2kg then what will be the impact of price on quantity demanded of apple when the price rise to 4$. The price elasticity of demand tells us about the rate of change in the quantity demanded of any commodity with respect to change in the price of any commodity. In this post, we are introducing our price elasticity of demand calculator where you can just put the value and it will measure the price elasticity and tell you about the kind of elasticity i.e. inelastic, elastic, unitary, etc. Price