Significance of elasticity of demand pdf. [PDF Notes] The Importance of Elasticity of Demand (5 Important Points) 2023 2022-10-26
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Patent ductus arteriosus (PDA) is a congenital heart defect that occurs when a blood vessel called the ductus arteriosus fails to close after birth. The ductus arteriosus is a temporary blood vessel that connects the aorta and the pulmonary artery in the fetal circulation. Its function is to divert blood away from the lungs, which are not needed for oxygenation while the fetus is in the womb.
Normally, the ductus arteriosus closes within a few days after birth, but in some cases it remains open, leading to a PDA. When this happens, oxygenated blood from the aorta mixes with deoxygenated blood from the pulmonary artery, causing an abnormal flow of blood through the heart and body.
PDA can be mild or severe, depending on the size of the opening and the amount of blood flow through the vessel. Mild PDA may not cause any symptoms and may not need treatment. However, severe PDA can lead to heart failure and other complications.
Symptoms of PDA may include rapid breathing, coughing, and poor feeding in infants. Older children and adults may experience shortness of breath, fatigue, and a rapid heartbeat. PDA can also increase the risk of respiratory infections and pneumonia.
Diagnosis of PDA is typically made through a physical examination and imaging tests such as an echocardiogram, which uses sound waves to create a detailed image of the heart. PDA can also be diagnosed before birth through prenatal ultrasound.
Treatment for PDA may include medications to close the ductus arteriosus or surgery to repair the defect. Medications such as indomethacin or ibuprofen can be used to close the ductus arteriosus by narrowing its walls. However, these medications may not be effective in all cases, and surgery may be necessary. Surgical options include closing the ductus arteriosus with a stitch or patch, or removing the section of the vessel that is not functioning properly.
In conclusion, patent ductus arteriosus is a congenital heart defect that occurs when the ductus arteriosus fails to close after birth. It can range from mild to severe and may require treatment, including medications or surgery. Early diagnosis and treatment can help prevent complications and improve the long-term outlook for individuals with PDA.
Role and Significance of Elasticity of Demand
In the case of price discrimination, the markets are divided mainly on the basis of difference in elasticities of demand for the same product in different markets. This will not in anyway affect the net monopoly revenue for him. Further, in imposing statutory price — control for a commodity, the elasticity of demand for that commodity has to be taken into consideration. Paradox of poverty amidst plenty: A bumper crop, instead of bringing prosperity to farmers, brings poverty. Price Elasticity of Demand PED Price elasticity of demand PED shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on quantity demanded. Government can impose higher taxes on goods with inelastic demand, whereas, low rates of taxes are imposed on commodities with elastic demand. The elasticity of demand refers to the degree of responsiveness of quantity According to Prof.
importance of elaticity of opportunities.alumdev.columbia.edu
Image Courtesy : 1. The factor of production for which demand is relatively inelastic can command a higher 4 Importance in Foreign Trade The concept of elasticity of demand is useful to determine terms and conditions in foreign trade. For this purpose, the elasticity of demand becomes important. Elasticity of demand in nationalizing an Industry This concept of elasticity of demand is used to enable the government to decide whether an Industry can be declared as public utility to be nationalized. Elasticity of demand in Price Fixation Every seller under imperfect competition and In price fixation, this concept is made use of not only in imperfect competition, but also in monopoly. Thus he will be able to change a higher price and big profits.
In the case of perfect competition this may be an exception as the producer can expect perfectly elastic curve for his product. In imposing a tax on a commodity, the elasticity of demand of the commodity should be carefully studied to find out the The tax burden should be equally borne by all and at the same time the government should realize adequate revenue from that commodity. Elasticity of demand in International Trade The concept of elasticity of demand forms the basis of international trade, particularly the terms of trade which implies the rate at which the domestic commodity is exchanged for foreign commodities. For example if the demand for labour is very elastic, the efforts of Trade Unions to increase the wages will not meet with success. In framing economic policies, the knowledge of elasticity of demand is required. A monopolist can fix the price only on the basis of elasticity of demand. Thus Elasticity of demand is of great significance in theory and practice.
Importance of Elasticity of Demand _ Karachi Board opportunities.alumdev.columbia.edu
The concept of elasticity of demand is also useful to a monopolist to practice price discrimination. If demand for a particular factor is inelastic as compared to the other factors, then it will attract more rewards. If demand for the product is elastic, then he will fix low price. So, while calculating terms of trade, the intensities of demand of the two countries requiring the product of the other country should be considered. A country may fix higher prices for the products with inelastic demand. However, if demand is inelastic, then he is in a position to fix a high price.
[PDF Notes] The Importance of Elasticity of Demand (5 Important Points) 2023
The concept of elasticity is not just an abstract idea its practical importance is very great. On the other hand if the demand for labour is inelastic, as there may be little scope for automation; Trade Unions can succeed well in getting the wages raised. If the proportion of expenditure is large, then demand for the product is relatively elastic. In all cases, without knowing the trends of demand and elasticities of commodities and farm products, the government cannot stabilize the prices properly. Decisions of Monopolist: A monopolist considers the nature of demand while fixing price of his product. As a result, their total income goes down.
However, if demand for such goods in the importing country is elastic, then the exporting country will have to fix lower prices. Rewards for other factors of production also depends on their elasticity of demand. . The problem of Incidence of taxation bearing the burden of taxation depends upon the elasticities of demand and supply of the commodities taxed. Elasticity of demand in production In a free 2.
If the demand for a product is relatively inelastic, he will fix up a higher price and vice-versa. Lord Keynes considered this concept to be the most important contribution of Alfred Marshall. Factor Pricing: Price elasticity of demand helps in determining price to be paid to the factors of production. The countries exporting commodities for which demand is relatively inelastic can raise their prices. If the demand is inelastic for the product of a monopolistic concern, it is a clear case of declaring as public utility and the government can nationalize the concern and operate it.
In framing the budget, the concept of elasticity of demand has a significant role in all matters relating to taxes and revenue. This is called the paradox of poverty amidst plenty. It happens due to inelastic demand for most of the agricultural products. When supply of crops increases as a result of rich harvest, their prices drastically fall due to inelastic demand. Formulation of Government Policies: The concept of price elasticity of demand is important for formulating government policies, especially the taxation policy. IF the demand is inelastic he knows that the people must buy such commodities.
The concept is also useful in formulating the export and import policy of a country. He is in a position to control the price and fix high price when demand is inelastic and low price when it is elastic will bring him the maximum profit. Share of each factor in the national product is determined in proportion to its demand in the productive activity. Thus this concept of elasticity of demand helps the government to impose the tax on a commodity whose demand lass elastic and hence earn valuable revenue. For stabilizing agricultural prices, the government may adopt either output control or purchase surpluses and other similar operations. Elasticity of demand in Distribution The concept of elasticity of demand has an important role to play in the determination of the rewards for factors of production in a price-enterprise economy.