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August 27, 2020

Discussion question

Price elasticity of demand measures consumers responsiveness to changes in the price of a good. There are a number of variables that affect consumers decisions, among them the following:

The availability of substitutes
The specific nature of the good
The part of income spent on the good
The time consumers have to buy the good
Please draw on your experiences as a consumer and your Unit 2 readings to address the following 4 topics. Make sure you use economic concepts in your main contribution.

Choose a product that you have purchased in the past 13 months from a clothing or shoe store.
Describe how each of the 4 factors listed above contributed to the elasticity of the good.
Is the product considered elastic, inelastic, or unitary elastic?
What effect does the current supply and current demand have on this product?

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