Reference no: EM132294393

The price elasticity of demand (e_p) is defined in the textbook as the percentage change in the quantity demanded of a given good, X, relative to a percentage change in its own price, all other factors assumed constant.

The textbook presents three major determinants of a good's price elasticity of demand:
1. The number of substitute goods
2. The percent of a consumer's income that is spent on the product
3. The time period under consideration
Consider some other possible determinants:
4. Nature of the good: necessity, comfort or luxury good
5. Income level: Higher income level group demand versus lower income level group demand
6. Level of price
7. Possibility of postponement of consumption
8. Number of uses
9. Consumption habits

Choose a product/good/commodity/brand you are familiar with: one your company sells or one you personally consume.
Consider the possible determinants of your chosen good's price elasticity of demand.

Product is "SALT"

Write a 1- to 2-page business brief that includes the following sections.

Include 1 to 2 sources
• Opening: Discussion of the chosen product/good/commodity/brand and the reasons you chose it.
• Discussion on what you consider the major determinants of the chosen good's price elasticity of demand.
• Recommendation: Choose its one or two most significant determinants and comment on the good's relative price elasticity of demand

Attachment:- Guideline.rar