Price Elasticity - PriceElasticity Have U.S Drivers Reached...

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Price Elasticity “Have U.S. Drivers Reached Filling Point of No Return?” by Justin Lahart “Airlines Try Business-Fare Cuts, Find They Don’t Lose Revenue” by Scott McCartney While price is the strongest factor affecting demand, there are several factors that heavily influence the price elasticity of demand. Inelastic products are much less resistant to affects from price increases, allowing managers the flexibility to raise prices with little to no concern for losing sales. On the contrary, elastic products are highly vulnerable to and influenced by fluctuations in price. The elasticity of a product can change over time, affecting firms and industries that utilize that product. “Have U.S. Drivers Reached Filling Point of No Return?” by Justin Lahart and “Airlines Try Business-Fare Cuts, Find They Don’t Lose Revenue” by Scott McCartney discuss the affects of changing elasticity in gasoline and airplane tickets, respectively. The articles highlight the number of substitute goods, the percentage of a consumer’s budget spent on a product, and the time period that the product is under construction as strong influences on the price elasticity of gas and airplane ticket prices.
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