Unit 5- Economics- Price Sensitivity
- Created by: clo_boh
- Created on: 31-03-15 10:57
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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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