Price Elasticity
150 words – APA format
Can we use the concept of price elasticity to identify a brand’s competitors? How would that work?
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Price elasticity of demand is used to show the responsiveness of the quantity of goods demanded in response the change in its price. Different commodities have different price elasticity. Some commodities are perfectly elastic while others are perfectly inelastic. If a commodity is perfectly elastic, it means that a slight change in its price leads to a very huge reduction I the quantity demanded. All goods that conform to the law of demand have negative price elasticity of demand. Other goods like Giffen goods and Veblen goods do not conform to the law of demand and therefore have positive price elasticity………………
APA
302 Words
