Price Elasticity of Demand for Mylan Laboratories, Pittsburg


Term Paper, 2011

5 Pages, Grade: A


Abstract or Introduction

The price elasticity of demand (PED) is used to measure how price changes affect the quantity of goods or services sold. It is therefore a responsive mechanism and is applied to all industries. The most common description as crafted by Alfred Marshall is the percentage change of the quantity of a product demanded in response to a one percent change in the price of the product with all other factors remaining constant (Marshall 1920). When the change in demand is relatively unaffected (where the PED is less than 1), the goods sold are considered to be inelastic. In a business aiming at maximizing revenue, the PED has to be exactly 1. A PED higher than 1 reflects a very elastic product where the quantities demanded are largely affected by the price change. The figures below reflect the way the various curves will look like in different scenarios.

Details

Title
Price Elasticity of Demand for Mylan Laboratories, Pittsburg
College
Western Illinois University
Grade
A
Author
Year
2011
Pages
5
Catalog Number
V267032
ISBN (eBook)
9783656576495
ISBN (Book)
9783656576440
File size
358 KB
Language
English
Keywords
price, elasticity, demand, mylan, laboratories, pittsburg
Quote paper
Kathy Morgan (Author), 2011, Price Elasticity of Demand for Mylan Laboratories, Pittsburg, Munich, GRIN Verlag, https://www.grin.com/document/267032

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