Price Elasticity

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Title: Price Elasticity

Essay Details:

Subject: Business

Author: Kara B

Date: May 18, 2014

Level:

Grade: A

Length: 5 / 1263

Essay text:

If the percentage change in demand is greater than the percentage change in price, the product would have a ratio of more than 1, and would therefore be considered elastic. If the ratio were greater than 1, that product would then be considered inelastic, as the percentage change in demand was less than that of the percentage change in price. For example, if a product were to increase in price by 10%, and the overall demand fell by only 5%, then the good would be considered inelastic. If a 10% rise in price caused a 20% fall in demand that same good is elastic (McConnell & Brue, 2004). Since Apple released the first iPod in 2001, the product has served as one of its iconic products (Hormby & Knight, 2005)...

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