For the product or service that your employer provides to market (or a product offering of your choice from a company of interest), discuss in detail whether you believe the demand for that product or service is relatively elastic or relatively inelastic.
What is the price elasticity of demand and what in general determines the elasticity of demand?© BrainMass Inc. brainmass.com June 4, 2020, 3:00 am ad1c9bdddf
In my neighborhood, there is a gas station that is considered high profile. Their main selling product is their petrol, due to being in an excellent location. When placing the gas station within the context of price elasticity, I would argue that the demand for the petrol is relatively inelastic. In other terms, a change in price is likely to lead to a small change (or even no change) in demand. If the price of petrol increased, people are still going to purchase it at the same level due to the fact that various areas of ...
This solution explains what price elasticity of demand is and what determines it by providing an example to illustrate the concept.