Unit 5- Economics- Price Sensitivity

  • Created by: clo_boh
  • Created on: 31-03-15 10:57

Price Sensitivity-

-Demand is sensitive to price if :

-There are many substitutes

-The product is a luxury item

Price Sensitive-

Demand will change more with price

Increasing the price with decrease demand, which will decrease revenue.

There are many substitutes, so


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