Essays on Role of Various Elasticities in Operations of Government and Business Literature review

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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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