Inelastic Demand

The behaviour of the company will consist in applying price increases to products with a faster-growing and more inelastic demand (new products) and price cuts to products with a decreasing and more elastic demand owing to increasing competition or obsolescence. 

For an elastic demand, the marginal revenue MR is positive, and for an inelastic demand the MR is negative. Finding the equation for marginal cost gives... 

Fruit crops typically have a short season and inelastic demand. As a consequence, many processors convert part of the annual harvest to concentrated purees for later utilization. This, in effect, reduces plant size needed to accommodate the crop and better utilizes the plant by extending the operating season. 

Eajfar, P. 1999. Capacity Spectrum Method Based on Inelastic Demand Spectra, Earthquake Engineering and Structural Dynamics, 28, 979-993. 

Eberhard MO, Sozen MA (1993) Behavior-based method to determine design shear in earthquake-resistant walls. J Struct Div Am Soc Civil Eng N Y 119(2) 619-640 Fajfar P (1999) Capacity spectrum method based on inelastic demand spectra. Earthq Eng Struct Dyn 28(9) 979-993... 

Since the indirect evaluation of the behavior factor intrinsically included the uncertainty of both the elastic spectral amplification as well as the inelastic reduction, the scatter between target and actual ductilities or strength demands was high. Furthermore, use of a constant over a period range or over the entire period range, as originally adopted in ATC (1978), was shown to be inadequate to Umit the inelastic demands of SDOF systems, particularly for near-held earthquake events with severe velocity pulses (Mahin and Bertero 1981). 

Fajfar P (1999) Capacity spectrum method based on inelastic demand spectra. Earthq Eng Struct Dyn 28(9) 979-993... 

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