Which one would have more excess burden. A more inelastic demand or a more elastic demand?

0 ⤊

Which one would have more excess burden. A more inelastic demand or a more elastic demand?

2006-11-10 09:42:28 · 3 answers · asked by JB 1 in Business & Finance ➔ Other - Business & Finance

3 answers

Elastic demand.

2006-11-10 09:43:37 · answer #1 · answered by D.J 5 · 0⤊ 0⤋

More elastic demand, becaus elasticity means unpredictability. Changes in demand can cause problems ranging from waste to failure in meeting demand.

With inelastic demand, you can always predict how much of a given product must be manufactured and delivered to meet that demand.

2006-11-10 09:45:16 · answer #2 · answered by Privratnik 5 · 0⤊ 0⤋

what are you asking - dont undertsand where burden comes in.

2006-11-10 09:44:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋