This week we will be discussing demand elasticity and the impact of consumer behavior on demand.
Demand elasticity is actually a quantitative measurement designed to show percentage changes in quantity demands by consumers. Elasticity is measured in terms of product prices, consumer income, prices of other goods and services, and several other variables. Elasticity, then, is a measure of the responsiveness to the changes in these variables. For the first part of this week's discussion complete the following task by Wednesday and then respond to at least two of your classmates' posting by Sunday:
- Select a product that is marketed in the U.S. that has shown significant movements in consumer demand elasticity. Identify the reasons for the movements and explain how the elasticity has affected management's ability to control pricing.
