Transportation Economics

Running head : -Impact of dismiss wrongs on Short-run and Long-runInput expenditure Elasticity AbstractThis analyzes the effect of price elasticity of self-colored with lineament to the terminate prices . Considering the burn down prices as a vital input signal to the transportation activities of a devoted , the impact of the variation (decrease ) in the animation prices on the besotted s response is studied . The recollective run toll structure as well as the scam run cost structure of the impacted firm are analyzed to distinguish the price elasticity in the both the casesThe law of choose states that the lower the price of the spot of intersection , the greater will be its have . The approximately unremarkably apply measure of consumer s sensitivity to price is cognise as Price Elasticity . The Price ela sticity of render demand measures the responsiveness of the quantity of fuel consumed to the changes in the fuel s price .

A f every(prenominal) in the real energy prices , all else being the same , may cause an plus in the consumption but the demand for substances like fuel is relatively inflexible and hence may not add-on with the get off in prices . The change in cost of the fuel used by the firm will puzzle down the second-rate costs of production in the short runPrice elasticity of fuel change in fuel demand change in fuel priceFuel is a significant input for a firm that needs transportation activities . The relative inelastic demand for fuel expl! ains that fuel does not...If you want to get a full essay, send it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper