ECON 220 unit 2 DB

ECON 220 unit 2 DB - ECON 220 Unit 2 DB May 4, 2011 There...

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ECON 220 – Unit 2 DB May 4, 2011 There are four factors that influence the price elasticity of demand: The availability of substitutes The specific nature of the good The part of income spent on the good The time consumers have to buy the good (Economics, 2 nd Ed. 2009) A good I recently purchased was a pair of size 8 women’s flip-flops. I purchased the flip- flops at Academy sports and outdoors on sale for $2.99, the original price was $6.99. Academy was running a special for one week only on their entire stock of flip-flops. When I purchased the flip-flops at Academy, I was there to purchase a swimming suit for my daughter because she had out grown hers from last year. While walking and contemplating on which swim suit to purchase, an aisle of colorful flip-flops caught my eye. There were flip-flops in every color you could imagine. On each side of the aisle
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there were a large quantity of flip-flops ranging from style, price, colors and sizes. The price elasticity of demand is higher because there are close substitutes of the flip-flops I
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This note was uploaded on 05/21/2011 for the course ECON 220 taught by Professor Dr.leo during the Winter '10 term at AIU Online.

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ECON 220 unit 2 DB - ECON 220 Unit 2 DB May 4, 2011 There...

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