Fairly Elastic Demand- Shows that a
change in prices will leads to high quantity demanded obviously due to high
responsiveness of consumers. This often occurs in luxuries and causes firms
will get more profits and revenues
Fairly Inelastic demand- Shows that a change
in prices will leads to change in quantity demanded but not really obvious
changes due to low responsiveness of consumers. This often happens in goods and
causes firms earn less profits and revenues.
Unit elastic demand- Shows that there is
an equal between the change in prices and the change in quantity demanded due
to no any responsiveness to consumers and the consumerisation still goes on.
Perfectly elastic demand –Shows that the
increase in prices will cause the quantity demanded is zero due to buyers have
fully responsiveness to the price changes. Recession occurs to the firm.
Perfectly
Inelastic Demand- Shows that when there
is a change in the prices, it will not affects the change in quantity demanded
due to no responsiveness to consumers.
Written By
Elbin Wong Tze Bin
can you give me some examples of goods with fairly elastic demand and why they fall into such category?
ReplyDeleteLV bags and CHANEL are the luxuries which are related to fairly elastic demand. They fall into such category is because the price of luxuries is too high and this causes customers will pay more attention on the price changes from luxuries. If a price of a luxury decrease, the quantity demanded will increase frequently.
DeleteWhy people still wan to buy luxury goods??
ReplyDeletePeople still wan to buy luxury goods due to the increase of their level of income and their personality. High level of income will causes people to buy their wants and not just to buy their needs. Personality such as loyalty to a brand will also causes a person to buy luxury goods.
Deletenice nice <33
ReplyDeletebravo!
ReplyDeleteNice:)add oil :)
ReplyDeletenice job again!
ReplyDeletenice :)
ReplyDelete