### Concept of Variance Analysis and Types of Variances

Concept of Variance Analysis and Types of Variances The terms variance refers to the deviation of the actual costs from the standard costs due to various causes. In accounting, a variance is the difference between an expected or planned amount and an actual amount. For example, a variance can occ.....

Sales Value Added Tax Value added tax in short known as VAT. A value added tax (VAT) is a consumption tax added to a product’s sales price. It represents a tax on the “value added” to the product throughout its production process. It is a type of consumption tax that is placed o.....

### Concept of Elasticity of Demand

Concept of Elasticity of Demand The concept of elasticity of demand was first introduced by the classical economists Cournot and J.S Mill. Later on, new classical economist Alfred marshal developed it in the scientific way. Demand elasticity refers to how sensitive the demand for a good is to cha.....

### Types of Price Elasticity of Demand

Types of Price Elasticity of Demand Price elasticity of demand is a term in economics often used when discussing price sensitivity. In other words, the price elasticity of demand is defined as the ‘ratio of percentage change in the quantity demanded to the percentage change in price. There are.....

### Concept of Price Elasticity of Demand

Concept of Price Elasticity of Demand The price elasticity of demand measures the degree of responsiveness of quantity demanded for a certain commodity to the change in its price. It measures the change in demand for a good in response to a change in price. Price elasticity of demand is a measure.....

### Important Uses of Income Elasticity of Demand

Some important uses of income elasticity of demand are as follows: The income elasticity of demand shows the responsiveness of quantity demanded of a certain commodity to the change in income of the consumer. The income elasticity of demand is also defined as ‘ the ratio of the percentage chang.....

### Determinants of Elasticity of Demand

Elasticity of demand for any commodity is determined by a number of factors which are explained below: Nature of the commodity: The elasticity demand for any commodity depends upon the nature of the commodity, i.e., whether it is a necessity, comfort or luxury. Whereas the demand for the luxury g.....

### Significance of Income Elasticity of Demand

Significance of Income Elasticity of Demand Income elasticity shows fluctuations in demand for goods or services as precipitated by changes in the purchasing power of consumers. While price elasticity plays a significant role in pricing of a product to maximize the total revenue of an organizatio.....

### Types of Income Elasticity of Demand

Types of Income Elasticity of Demand The income elasticity of demand shows the responsiveness of quantity demanded of a certain commodity to the change in income of the consumer. The income elasticity of demand is also defined as ‘ the ratio of the percentage change in the demand for a comm.....

### Concept of Income Elasticity of Demand

Concept of Income Elasticity of Demand The income elasticity of demand shows the responsiveness of quantity demanded of a certain commodity to the change in income of the consumer. The income elasticity of demand is also defined as ‘ the ratio of the percentage change in the demand for a co.....