Substitutes: The more substitutes, the higher the elasticityAvailability of Close Substitutes - Products that have readily available substitutes tend to have elastic demand. This is because consumers will switch to the available substitute when the price of the product rises, causing a large decrease in quantity demanded. When products do NOT have readily available substitutes, consumers are not able to switch when the price of the product rises - therefore the decrease in quantity demanded will be smaller. Products without readily available substitutes tend to have more inelastic demand.
Necessities vs. Luxuries - Because necessities are goods that people need to consume, they tend to have an inelastic demand. This means that when the price of a necessity rises, quantity demanded for the necessity does NOT change much. Luxuries, on the other hand, are not goods that people need to consume (people just consume them if they are able). Because of this, an increase in the price of a luxury tends to be associated with a large decrease in the quantity demanded for the luxury. Economists usually find that luxuries have elastic demand.
On Thu, Jun 2, 2011 at 12:46 AM, mc100401159 Sibghat Ullah Khan Tareen <mc100401159@vu.edu.pk> wrote:
Hello Binish,In first case i think the difference will be high due to more similar options available and in second case it will be less due to less options available and elite customers who are not into price differences but more into buying it.What is your opinion?
Br,Sibghat
On Thu, Jun 2, 2011 at 12:00 PM, █▓Binish_Awais█▓ <greyferry@gmail.com> wrote:
lets participate in this discussion dearall mba-1 do participate plz--
---------- Forwarded message ----------
From: █▓Binish_Awais█▓ <greyferry@gmail.com>
Date: 2011/6/2
Subject: MGT301 discussion thread opened by Binish
To: **Grey Ferry** <greyferry@gmail.com>
--
--
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
To post to this group, send email to vuaskari_com@googlegroups.com
Visit these groups:
This (Main) Group:http://groups.google.com/group/vuaskari_com?hl=en?hl=en
MIT/MCS Group: http://groups.google.com/group/vu_askarimit?hl=en?hl=en
HRM Group: http://groups.google.com/group/askari_hrm?hl=en?hl=en
Banking Group: http://groups.google.com/group/askari_banking?hl=en?hl=en
Management: https://groups.google.com/group/vuaskari_mgt?hl=en
Marketing: https://groups.google.com/group/vuaskari_mkt?hl=en
MIS Group: http://groups.google.com/group/askari_mis?hl=en--
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
To post to this group, send email to vuaskari_com@googlegroups.com
Visit these groups:
This (Main) Group:http://groups.google.com/group/vuaskari_com?hl=en?hl=en
MIT/MCS Group: http://groups.google.com/group/vu_askarimit?hl=en?hl=en
HRM Group: http://groups.google.com/group/askari_hrm?hl=en?hl=en
Banking Group: http://groups.google.com/group/askari_banking?hl=en?hl=en
Management: https://groups.google.com/group/vuaskari_mgt?hl=en
Marketing: https://groups.google.com/group/vuaskari_mkt?hl=en
MIS Group: http://groups.google.com/group/askari_mis?hl=en
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
To post to this group, send email to vuaskari_com@googlegroups.com
Visit these groups:
This (Main) Group:http://groups.google.com/group/vuaskari_com?hl=en?hl=en
MIT/MCS Group: http://groups.google.com/group/vu_askarimit?hl=en?hl=en
HRM Group: http://groups.google.com/group/askari_hrm?hl=en?hl=en
Banking Group: http://groups.google.com/group/askari_banking?hl=en?hl=en
Management: https://groups.google.com/group/vuaskari_mgt?hl=en
Marketing: https://groups.google.com/group/vuaskari_mkt?hl=en
MIS Group: http://groups.google.com/group/askari_mis?hl=en
Comments
Post a Comment