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Unformatted text preview: if there are few substitutes then naturally it would become more inelastic. A consumers income impacts products elasticity due to the fact that a consumer may stop purchasing an item all together if that price rises too much. Its the same as mentioned before, if the produces price is higher it becomes less elastic, however if the items price was low to begin with it would stay elastic....
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This note was uploaded on 01/14/2012 for the course ECO 550 taught by Professor Gooding during the Spring '09 term at Strayer.
- Spring '09
- Price Elasticity