In: Business and Management. It may describe the extent of which goods or services change with supply or demand as well as possible consumer income Investopedia. There are several different categories of elasticity of demand. There are products that are defined as elastic, inelastic and unitary. An inelastic product is defined when the elasticity of demand is less than one An inelastic product is a product where in spite of price changes, consumers continue to purchase.
In: Other Topics. If a decrease in the price of football tickets increases the total revenue of the athletic department, this is evidence that demand is: A price inelastic. B price elastic. C unit elastic with respect to price.
In: Business and Management. Question: Amazon. The accompanying table shows how the two groups respond to the discount. Group A sales per week 1. Using the midpoint method, calculate the price elasticities of demand for group A and group B.
Price elasticity of demand is a measurement of the change in consumption of a product in relation to a change in its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others. It measures the responsiveness of demand after a change in price.