What is elasticity of demand?

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When studying the demand curve, it is important to pay attention to its elasticity for a particular product. It shows how demand changes under the influence of the level of market prices and how quickly consumers react to the rise or fall in cost. High elasticity of demand is typical for certain types of products. In particular, when household appliances start to become more expensive, buyers are less eager to buy them and, if the equipment breaks down, they most often do not buy a usa phone list new device, but try to repair the old one. At the same time, elasticity is often affected not only by prices, but also by the level of consumer income. Accordingly, elasticity of demand is distinguished by price and income.

It is worth noting that when many manufacturers offer the same type of products, demand is characterized by high elasticity. Then, if the price in one store increases slightly, buyers will immediately turn to competitors. In this regard, with perfect competition, price control becomes a difficult task.




What is a demand schedule?
This is a curve that shows the relationship between demand and price. Most often, it moves to the left when demand decreases and to the right when demand increases. The position of the demand curve depends on the factors that influence demand, while maintaining the current price.

In real conditions, the shape of the curve is determined not only by cost, but also by various non-price factors that influence consumer actions. It is usually conventionally depicted as an arc, but in reality the graph may have different forms.

Demand for products is subject to frequent fluctuations. Its value is determined taking into account many price and non-price factors that influence customer demand. Price factors include the cost of the product itself, as well as its analogues, substitutes and complementary products. Non-price factors include customer preferences, seasonality, and the influence of fashion.