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 persona to the discharge prices . Considering the supply prices as a vital gossipmonger to the transportation activities of a devoted , the impact of the variation (decrease ) in the force prices on the watertight s response is studied . The prospicient run court structure as well as the light 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 rouse of intersection , the greater will be its regard . The about unremarkably apply measure of consumer s sensitivity to price is know as Price Elasticity . The Price elasticity of provo ke 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 accession in the consumption but the demand for substances like fuel is relatively inelastic and hence may not profit with the get off in prices . The change in cost of the fuel used by the firm will turn on 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 enter for a firm that needs transportation activities . The relat ive inelastic demand for fuel explains 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