Why such information concerning price elasticity of demand

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In the material of Chapter 5 you were introduced to the concept of elasticity. This concept has many applications in economics and in other sciences. One application in economics is the price elasticity of demand that measures how sensitive consumer demand is to the change in the price of a product or service

First, give an example of a product or service that you purchased in the last year for which your demand is relatively inelastic. You should explain what factors influenced why your demand for the selected product or service was inelastic. Be as specific as possible in your explanation. You may wish to review the factors influencing the elasticity of demand for a product to assist you in your explanations.

Second, give an example of a product or service that you purchased in the last year for which your demand is relatively elastic. You should explain what factors influenced why your demand for the selected product or service was elastic. Be as specific as possible in your explanation. You may wish to review the factors influencing the elasticity of demand for a product to assist you in your explanations

Describe why such information concerning the price elasticity of demand would be of interest to the firms selling these products and services. Do you think it is fair for firms to use information concerning the elasticity of demand for their products in their pricing decisions? How might they use this information in their pricing decisions?

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In this particular assignment, the analyst describes the price elasticity. Price elasticity refers to a change in the price of a commodity and with the price demand of the commodity also changes. In this assignment analyst also focused on the factors affecting the price elasticity of a product. At last, the analyst also answers three questions based on the price elasticity of product and its related organizations.

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