Diktat is a German word that means "dictation" or "dictatorship." It is often used to refer to the harsh terms imposed on a defeated country by the victors in a war. In the context of Germany, the term diktat is most commonly associated with the Treaty of Versailles, which was signed at the end of World War I in 1919.
The Treaty of Versailles was a peace treaty between the Allied Powers (led by France, the United Kingdom, and the United States) and Germany. It was meant to bring an end to the war and to establish the terms under which the defeated Germany would be forced to pay reparations to the Allied Powers. The treaty also imposed severe limitations on Germany's military and territorial expansion.
Many Germans viewed the Treaty of Versailles as a diktat, or dictate, because they felt that the terms were imposed on them by the victorious Allies without any input from the German government or people. The treaty was seen as extremely harsh and punitive, and many Germans felt that their country had been humiliated and treated unfairly.
The resentment and anger that many Germans felt towards the Treaty of Versailles played a significant role in the rise of Adolf Hitler and the Nazi Party in the 1920s and 1930s. Hitler and the Nazis promised to restore Germany's honor and power, and they used the treaty as a rallying cry to mobilize support for their cause. Hitler came to power in 1933, and he quickly set about tearing up the Treaty of Versailles and rebuilding the German military. This ultimately led to World War II, which ended with the defeat of Germany and the imposition of another set of harsh terms in the form of the Potsdam Agreement.
In conclusion, the term diktat is closely associated with the Treaty of Versailles and its impact on Germany following World War I. Many Germans saw the treaty as a dictate imposed on them by the victorious Allies, and the resentment and anger that it generated played a significant role in the rise of the Nazi Party and the outbreak of World War II.
Price elasticity of demand on a unitary curve
The unit elastic definition in economics is when the goods's change in demand is directly related and proportional to the change in the corresponding variable. Put simply unitary elastic describes a demand or supply that is perfectly responsive to price changes by the same percentage. We have a Noone will ever know that you used our assignment help services. For each graph, the example of the price of general household appliances will be used. Conclusion We can understand from the above example as the prices increase, the quantity of goods decreases and vice versa. When the price rises, the demand lowers, but the supply rises.
Constant Unitary Elasticity Demand Curve • Student Homework Help
But the thing to keep in mind is that expenditure and Revenue Revenue is the amount of money that a business can earn in its normal course of business by selling its goods and services. Perfectly Elastic Demand This is another extreme case of price elasticity of demand. Under the price elasticity of demand, the elastic demand graph will have price on the y-axis and quantity on the x-axis. This means that a given % change in price leads to the same % change in demand, with the co-efficient of PED equaling 'one' hence the name 'unitary'. Therefore, the demand for donuts decreases significantly because people are substituting danishes for donuts.
What Are Elastic, Unitary and Inelastic Elasticity?
This graph of unit elastic supply shows how the supply of a good deceases at a proportional rate to the decrease in price. What are some examples of products with elastic demand? In the unitary demand, the product elasticity is negative as the product price decrease does not help to generate more revenue. However, the negative sign is ignored and the absolute coefficient value is used in interpreting the response of the quantity demanded. We have highlighted some of the most popular subjects we handle above. Her writing highlights include publishing articles about music, business, gardening and home organization. Therefore, in such a case, the demand for a notebook is perfectly inelastic.
Example of Price Elasticity of Demand The price elasticity of demand is calculated by dividing the percent change in the quantity demanded by the percent change in its price. Companies selling goods that are unitary often make large profits because people consider these goods a necessity above all other goods. For example, the demand for millet will decrease if the income of consumers increases since they will prefer to purchase wheat instead of millet. Inelastic products are typically those people consider necessities. Salt is inelastic because even if its price goes high, its demand will not be much affected since it is an essential product.
Take the example of gas prices. Important Points About Unitary Elastic Demand Curve You are free to use this image on your website, templates, etc. We deal in all academic disciplines since our writers are as diverse. Unit price elastic is either an inverse or direct relationship: There are two primary measures of unit elastic. In the case of the federal government, it refers to the total amount of income generated from taxes, which remains unfiltered from any deductions. This is a direct relationship because when the price of a good goes down, more people will buy the product and the supply will go down. In other words, the unit elastic demand implies that the percentage change in quantity demanded is exactly the same as the percentage change in price.
What happens when incomes rise? How do people react when the price of a product goes up or down? So, overall, total revenue is still the same. For clothing to be in the unit elastic category, they have to be considered normal brands of clothing. To calculate the elasticity of a good, simply take either the percentage change in supply or demand and divide it by the percentage change in price. The variables in economics can cause the elasticity of a good to change dramatically and disproportionately. When prices change by 3%, the quantity demanded changes by more than 3%. Stabilising income For example, if a coffee producing country such as Brazil wishes to stabilise the income revenue going to coffee producers, and assuming it can set the domestic price, it could attempt to set a price each year which tried to stabilise income. Unit Elastic Examples Unit elastic goods fall into a category of necessary goods, which means that they are important to most people's lives, but are not essential for survival.
Changes in price do not change the demand for the product very much. FAQs How do you know if demand is elastic? If a person wants to buy the product X, he could choose among different firms for the purchase. Products that see almost no change in demand are called essential goods. It is calculated by dividing the change in the costs by the change in quantity. We can determine the elasticity coefficient to interpret the demand elasticity using an alternative approach.
A price change of 10%, will see a corresponding change in supply and demand of 10% Unit elastic supply is the measure of the proportional change in the current supply based on the change in price. The opposite effect applies when companies lower prices. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free. Supply elasticity of a good with unit elastic supply is 1 unlike the demand curve, the supply curve is upward sloping; thus, the elasticity of unit elastic supply is simply 1. The graph below shows the demand for appliances based on a 15% drop in overall prices. Is salt elastic or inelastic? Use MathJax to format equations.
Unitary Elastic of Demand: Meaning and Explanation
They are an example of Additionally, a product will have unitary elasticity if its demand varies in exact proportion to the percentage change in its price. Therefore, in such a case, the demand for pens is relatively elastic. Psychology While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. The coefficient of price elasticity of demand is zero 0. Suppose product X is manufactured by a large number of sellers in the market. The demand curve will be relatively flattened towards the x-axis, showing high Sensitivity To Price Price Sensitivity, also known and calculated by Price Elasticity of Demand, is a measure of change in percentage term in the demand of the product or service compared to the changes in the price.