The paper "Role of Various Elasticities in Operations of Government and Business" is a good example of a literature review on business. Various authors recognize the need to understanding the various elasticities of demand and their importance for both government and business operations is an important and timely topic (Swinton and Thomas, 2001; Richard and Zolt, 2003; Parkin, 2005 and Gamble et al, 2011). According to Eisenhauer and Principe (2009) Knowledge of various elasticities of demand has several implications. In particular, it is an essential concept for business managers and government or policymakers to comprehend.
It can provide possible enlightenment on the inconsistency between the assumption of great knowledge in a competitive business and the greatly flawed information of price which is empirically apparent among customers in most research. Moreover, better information on prices might be employed predominantly to deduce better price elasticity of demand where the price-elasticities of demand for particular products have been unanticipated although measures of customer price information are obtainable. On the other hand, it is often dismissed as excessively abstract and deficient of actual-world application. According to these two scholars, most students and interested parties are usually not provided with “ live” datasets with which to experiment in applying elasticity concepts.
Preceding studies show that customers frequently display an astonishing lack of knowledge of goods prices (Eisenhauer and Principe, 2009). The present study is a critical review of the statement that knowledge of various elasticities of demand is useful for the effective operation of business and government. The starting point is a conceptualization of key terms followed by a detailed discussion of implications of knowledge of elasticities of demand for government and business alike and finally, a conclusion is drawn from the discussion. Conceptualization of Key Concept The Elasticity of Demand Jain and Kanna (2006) describe elasticity of demand as a technical concept seen as a measure of the receptiveness of one variable to modification in others.
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Chiang and Wainwright (2005). Fundamental Methods of Mathematical Economics (4th ed. ed.). McGraw-Hill.
Cobham, Alex (2007). "The tax consensus has failed!” The Oxford Council on Good Governance.
Eisenhauer, J and Principe, K (2009) "Price Knowledge and Elasticity", Journal of Empirical Generalizations in Marketing Science, Volume 12, No.2
Farnham, Paul G. (2005) Economics for Managers, Upper Saddle River NJ: Pearson Education, Inc.
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Ian W. H. Parry(1999) Tax Deductions, Consumption Distortions, and the Marginal Excess Burden of Taxation: Discussion Paper 99-48, 1616 P Street, NW Washington, Resource for the future, Aug, 1999.
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Scott Armstrong and Kesten C. Green (2011) Demand Forecasting: Evidence-Based Methods Oxford Handbook in Managerial Economics, August, 2011
Jain, T.R and Khanna(2006) Business Economics(ForBIM) Ansari Road, Darya Ganj, New Delhi Vimla Kymari Publications,
Jeanne S. Ringel, Susan D.Hosek, Ben A. Vollaard, Sergej Mahnovski (2000) The Elasticity of Demand for Health Care: A Review of the Literature and Its Application to the Military Health System National Defense Research Institute Rand H e a l t h
Khan, Mahmood-ul-Hasan (1998) A locative Efficiency in the Manufacturing Sector of Pakistan, unpublished M. Phil. Thesis, Department of Economics, Quaid-i-Azam University, Islamabad.
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Parkin, M. (2005). Microeconomics, Pearson Education, Inc., publishing as Addison-Wesley, Seventh Edition: 134.
Perloff, J. (2008). Microeconomics Theory & Applications with Calculus. Pearson.
Ralph C. Gamble , Rory Terry and Dosse Toulaboe (2011) Excise Taxes and the Stability of Price Elasticity Journal of Applied Business and Economics vol. 12(5) 2011pages 80-99
Richard M. Bird and Eric M. Zolt (2003) Introduction to Tax Policy Design and Development: A draft prepared for a course on Practical Issues of Tax Policy in Developing Countries, World Bank, April 28-May 1, 2003.
S.H. Cheng and T.L. Chiang (1997) The Effect of Universal Health Insurance on Health Care Utilization in Taiwan: Results from a Natural Experiment," Journal of the American Medical Association 278, no. 2 pages 89–93
Samuelson, W.; Marks, S. (2003). Managerial Economics (4th ed.). Wiley
Samuelson; Nordhaus (2001). Microeconomics (17th ed.). McGraw-Hill.
Swinton, J. R. and Thomas, C. R. (2001). Using Empirical Point Elasticities to Teach Tax Incidence. Journal of Economic Education, 32, 356-368
Zweifel, P., and W. G. Manning (2000), “Moral hazard and consumer incentives in health care,” in A. J. Culyer and J. P. Newhouse, eds., Handbook of Health Economics, Elsevier, New York.