International Journal of Advances in Management and Economics (IJAME)

ISSN:2278-3369
banner8 banner
   
   
 
  Current
  Archive
  Registration
 
Contact e-Mail
 

TitleInsurmountable Business Problems and Optimal Managerial Decisions: Significance of Elasticity of Demand
AuthorPurna Chandra Rao
AbstractManagerial economics is the integration of economic tools and techniques with business practice. The concepts of managerial economics provide practical solutions to business problems. The basic aim of any business firm is profit making. The enhancement of sales is the major for making more profits .If the business entrepreneur is capable to predict the cost-output ratio, fixation of price, income of consumer and impact of advertising expenditure, the firm may improve its sales more proportionately. Therefore, to understand the behaviour of sales and to plan their growth, it is necessary to identify the factors that influence the sales and estimate their affect. For this purpose, management should integrate economic concepts with business decision making practice in order to understand and analyse the sales behaviour of the firm. In this process, the concept of elasticity of demand plays the pivotal role, which helps in providing a quantitative value for the responsiveness of the quantity demanded to change in each of the demand determinants. Therefore, this study find that the concepts of elasticity of demand are essential ingredients of optimal managerial decisions in the short run as well as long run plans of the business firm.
Issue

   
 
Username
Password
 
 
   
 
 
 
     
 
Open Access Policy || Publication Ethics
The publication is licensed under a Creative Commons License (CC BY)Licencia de Creative CommonsView Legal Code
Copyright© 2012, All Rights Reserved: International Journal of Advances in Management and Economics (IJAME)
Visited User :Visitor Counter