the marketing strategy - price Flashcards
1
Q
what is the elastic curve like?
A
flatter, small price change, big impact on demand
2
Q
what is the inelastic curve like?
A
steeper, small price change, small impact on demand
3
Q
what are the factors that might make demand for a product inelastic?
A
- limited number of substitutes available
- the degree of necessity
- good is subject to habitual consumption
- peak and off-peak demand
4
Q
what is elastic demand?
A
quantity demanded is sensitive to a change in price
5
Q
what is meant by inelastic demand?
A
demand is insensitive/not responsive to a change in price
6
Q
what is elasticity of demand?
A
shows how sensitive/responsive quantity demanded is to a change in price
7
Q
what makes a product elastic?
A
not a necessity, lots of substitutes, luxury product
