Phase 2-Individual Project
My Flower Shop
This project has to do with price elasticity, which is a measure used in economics to show the responsiveness of the quantity demanded of a good or service, in regards to the quantity demanded for a good or service to a change in its price. It will also give the percentage change in quantity demanded in response to a change in price. (wow.coursesmart.com/97812568314/page 551). A measure of the relationship between the change in quantity demanded of a particular good and a change in its price relates to prices sensitivity. If a small change in price is accompanied by a change of quantity demanded, the product will be elastic. A product that is inelastic is when a large change in price is accompanied by a small change in the quantity demanded. Elasticity is sensitive to change in price, the degree to which demand for a good or service, in this case the flowers I am selling, varies with its price. It has to do with sales, when sales increase with a drop in price and decreases with the rise in price. Things like appliances, cars, and other non-essential, or luxury items, show elasticity of demand, it is because they are not essential items such as medical supplies, food, or etc. (www.businessdictionary.com/definition/elasticityofdemand.html) Inelastic demand is when a demand for a product doesn’t increase or decrease with a fall or rise in its price; an increase in price would increase the revenue regardless of a fall in the quantity demanded. Inelastic examples would be groceries, gasoline, etc. things that are necessities. The percentage change in quantity demanded is less than the percentage change in price. It is also unresponsive to changes like demand, when it falls to increase in proportion to a decrease in price. (Tocker, R. (November 26, 2013) Econ 212 2 203 3 [chat 4]. Retrieved from Colorado Technical University Virtual Campus....
Tocker, R. (November 26, 2013) Econ 212 2 203 3 [chat 4]. Retrieved from Colorado Technical University Virtual Campus. ECON212-1304B-02. Principles of Microeconomics: https://campus.ctuonline.edu
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