Total value of the price elasticity of demand

The greater the total value of the price elasticity of demand

The greater the price change's receptiveness to quantity demand (Bas, Mayer, & Thoenig, 2017).

A small change in the price of a good results in a significant change in the volume requested of the product

The amount demanded of the product would decrease if the price of the item increased to X dollars. But, if the product has other equivalents, we would choose cheaper alternatives.

The quantity demanded is affected by changes in the price of the goods

As a result, the product was somewhat elastic in this situation. Consequently, if we spend a high amount of our income in purchasing this product, then any increase in the price of the item will create a problem as we will stop obtaining the item or otherwise try to buy lower quantities of the product (Galperin, & Ruzzier, 2013). Hence, this shows that the product is relatively elastic in demand. Conversely, if we spent a little amount of our income on the product, then it would have been relatively inelastic.

If the type of the product is essential good

such as medicines and food, it would be difficult for me to stop buying the good. This would create an inelastic demand as regardless of the rise in the price will not stop people from buying but curtail the consumption (McConnell, Brue, & Flynn, 2012).

Similarly, if the product is a luxury

there would be a substantial decrease in the demand for the product causing a higher elasticity.

If the product is top-rated and only available online

the increase in the rise in the popularity of purchasing online will enable persuasion to the customers to continue buying the item regardless of the increase in the price. This will lower the elasticity.


Bas, M., Mayer, T., & Thoenig, M. (2017). From micro to macro: demand, supply, and heterogeneity in the trade elasticity. Journal of International Economics, 108, 1-19.

Galperin, H., & Ruzzier, C. A. (2013). Price elasticity of demand for broadband: evidence from Latin America and the Caribbean. Telecommunications Policy, 37(6), 429-438.

McConnell, C., Brue, S., & Flynn, S. (2012). Microeconomics (2nd ed.). New York: McGraw-Hill/Irwin.

Deadline is approaching?

Wait no more. Let us write you an essay from scratch

Receive Paper In 3 Hours
Calculate the Price
275 words
First order 15%
Total Price:
$38.07 $38.07
Calculating ellipsis
Hire an expert
This discount is valid only for orders of new customer and with the total more than 25$
This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Find Out the Cost of Your Paper

Get Price