5, are an upper bound on the income elasticity of demand
for Wal-Mart's products.
To estimate the elasticity of demand
for mobile services, we apply the Houthakker-Taylor Model (HOUTHAKKER & TAYLOR, 1970).
i] = P, so in that equilibrium the elasticity of demand
facing each firm will simply be
As stated above, the mean long-run cross-price elasticity of demand
estimates for the various input pairs, especially for capital and labor, are consistent with the hypothesis that all the inputs are substitutes for one another in the long run.
The price elasticity of demand
for full price ticket holders is 1.
As we shall see, for the macroeconomic definition relevant for the S-multiplier, the elasticity of demand
, which is high when capital is fixed, is still higher when capital is variable.
Since the slope of the demand curve is negative, the elasticity of demand
is also negative, [eta] < 0.
Just as the ability of a ppm to raise price above MC is constrained by the size of the price elasticity of demand
of its consumers, so the ability of a rpm to lower the wage it offers below MRP is similarly constrained by the wage elasticity of supply of its workers.
BAM can utilize the price elasticity of the demand data by market; however, this example uses a wide range of elasticities and presents the results of many analyses assuming a constant price elasticity of demand
for each product in each market.
Despite the considerable recent interest in tax subsidies and credits, there is relatively little empirical evidence about the price elasticity of demand
for individual insurance.
We now apply our estimates of the elasticity of the own-price elasticity of demand
for wireless service to a basic model of economic efficiency to determine the welfare loss from the incremental taxation of wireless service.
Results depend on the elasticity of demand
, location of home citizens, and the size of the governmental bodies.