Please enable JavaScript.
Coggle requires JavaScript to display documents.
Price Elasticity Of Demand : (Uses (It helps businesses plan their pricing…
Price Elasticity Of Demand :
Price Discrimination
When the same product costs different for different people
Adult Theme Park Ticket: $20
Child Theme Park Ticket:$5
Uses
.
It helps Decide if how much of the sales tax businesses can pass on to customers
It helps businesses plan their pricing strategy
Elastic: Decrease price
Inelastic: Increase price
Can Predict the pricing of their product when they foresee a major event happening
.
.
.
.
.
Determinants of PED
Substitution
It is the key determinant of PED: The more substitutions, the more elstic it is
+Substitutes
:
+Elasticity
-Substitutes
:
-Elasticity
Income
The more peoples incomes rises the less they care about the price so it becomes less elastic