Demand Elasticity Paper
Demand Elasticity
Matthew Costa
Centenary College
Demand elasticity is a tool used by economists and firms to determine price points of products used by the consumer. The law of demand states that increasing the price of a good reduces the goods quantity demanded. The relationship is important and somewhat obvious. Similarly, demand reacts to changes in incomes, the price of related goods, and advertising efforts. Demand elasticity measures the responsiveness of one economic variable to another and of the concepts used to determine these relationships (Graham 2013). There are several reasons why firms gather information about the price elasticity of demand (PED). PED is a measure used by economists to demonstrate the elasticity of the …show more content…
(2014). In Economics exposed. Retrieved May 8, 2014, from Economics exposed website: http://economics-exposed.com/factors-determining-price-elasticity-of-demand/
Graham, R. (2013). Managerial Economics for Dummies (K. Ewing, Ed.). Hoboken New Jersey: John Wiley and Sons Incorporated.
Income Elasticity. (2014). In Econport. Retrieved May 9, 2014, from Econ port website: http://www.econport.org/content/handbook/Elasticity/Income-Elasticity.html
Keat, P., Young, P., & Erfle, S. (2013). Managerial Economics (D. Battista, Ed., Seventh edition). Upper saddle River New Jersey: Pearson education Incorporated.
Price Elasticity of Demand. (2014). In Wikipedia. Retrieved May 9, 2014, from Wikipedia website: http://en.wikipedia.org/wiki/Price_elasticity_of_demand
Price Elasticity of Demand( PED). (n.d.). In Economics online. Retrieved May 8, 2014, from Economics online website: http://www.economicsonline.co.uk/Competitive_markets/Price_elasticity_of_demand.html
Riley, G. (2012, September 22). Price Elasticity of Demand. In Tutor2u. Retrieved May 9, 2014, from Tutor2u website:
Matthew Costa
Centenary College
Demand elasticity is a tool used by economists and firms to determine price points of products used by the consumer. The law of demand states that increasing the price of a good reduces the goods quantity demanded. The relationship is important and somewhat obvious. Similarly, demand reacts to changes in incomes, the price of related goods, and advertising efforts. Demand elasticity measures the responsiveness of one economic variable to another and of the concepts used to determine these relationships (Graham 2013). There are several reasons why firms gather information about the price elasticity of demand (PED). PED is a measure used by economists to demonstrate the elasticity of the …show more content…
(2014). In Economics exposed. Retrieved May 8, 2014, from Economics exposed website: http://economics-exposed.com/factors-determining-price-elasticity-of-demand/
Graham, R. (2013). Managerial Economics for Dummies (K. Ewing, Ed.). Hoboken New Jersey: John Wiley and Sons Incorporated.
Income Elasticity. (2014). In Econport. Retrieved May 9, 2014, from Econ port website: http://www.econport.org/content/handbook/Elasticity/Income-Elasticity.html
Keat, P., Young, P., & Erfle, S. (2013). Managerial Economics (D. Battista, Ed., Seventh edition). Upper saddle River New Jersey: Pearson education Incorporated.
Price Elasticity of Demand. (2014). In Wikipedia. Retrieved May 9, 2014, from Wikipedia website: http://en.wikipedia.org/wiki/Price_elasticity_of_demand
Price Elasticity of Demand( PED). (n.d.). In Economics online. Retrieved May 8, 2014, from Economics online website: http://www.economicsonline.co.uk/Competitive_markets/Price_elasticity_of_demand.html
Riley, G. (2012, September 22). Price Elasticity of Demand. In Tutor2u. Retrieved May 9, 2014, from Tutor2u website: