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ECO550- Discussion Forum 2 (week 2)

ECO550- Discussion Forum 2 (week 2) - if there are few...

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There are several factors that can affect price elasticity, and these are called determinants. The determinants are things such as the amount of substitution goods, the amount of money that a consumer is willing and able to spend on a product and the time period. Many times when we go into a store it’s much cheaper to buy an off-brand item rather than something that is name brand, and having several substitutes can cause a higher elasticity and
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Unformatted text preview: if there are few substitutes then naturally it would become more inelastic. A consumer’s income impacts products elasticity due to the fact that a consumer may stop purchasing an item all together if that price rises too much. It’s 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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