elasticity

Question 1

what are Price Elasticity of Demand measuring?

Answer 1

Price Elasticity of Demand (PED) measures responsiveness of demand as a result of a change of price.

Question 2

what are price elasticity of supply measuring?

Answer 2

the amount of a good or service that businesses are willing to sell changes when the price of that good or services changes

Question 3

how is PED calculating?

Answer 3

% Change in Quantity Demanded​ : % Change in Price

Question 4

How is PES calculating?

Answer 4

% Change in Quantity supply : % Change in Price

Question 5

when the price will be inelastic?

Answer 5

Change in demand is less than the change in price​ or when PED is less than 1

Question 6

Price increases and price Inelastic, what happens to sales and why?

Answer 6

The sales is hardly decreases​

(less than the % change in price)

Question 7

If the PED of a product is more than 1 and price decreases, what happen with sales

Answer 7

Sales will increase significantly

Question 8

what does the Sales forecasting have to do?

Answer 8

calculate what impact a price change can have on demand
They help you make accurate decisions about production, personnel and procurement

Question 9

which 6 factors is Influencing for PED?

Answer 9

Brand, strength​, necessity​, habit​ availability of substitutes, time​, customer needs​

Question 10

what does the pricing Strategy have to do?

Answer 10

The company that controls the price setting