LA ELASTICIDAD PRECIO DE LA DEMANDA: CASO TEORICO NO CORROBORADO

Samuel Rebollar, Juvencio Hernández, Eugenio Guzmán, Eulogio Rebollar and Felipe de Jesús González

Revista Mexicana de Agronegocios, 2021, vol. 48, issue January-June 2021

Abstract: The objective of this work was to present an empirical analysis that shows that in the face of inelastic price elasticities of demand but very close to unity, an increase in the price of the product does not necessarily imply an increase in total income. The analysis methodology was based on the theory of price elasticities of demand and its relationship with total income, which is exemplified in a quantitative way. The results indicate that in the range of price elasticities of demand ranging from - 0.90 to - 0.99, observing that an increase in product prices does not cause an increase in total income. Concluding that in the face of inelastic price elasticities of demand greater than zero but less than 0.90, an increase in product prices does cause an increase in income, as well as elasticities with values greater than or equal to 1.0, as indicated by the theory microeconomic.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ags:remeag:312361

DOI: 10.22004/ag.econ.312361

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