There are 4 factors that influence the price elasticity of demand:
· The availability of substitutes
· The specific nature of the good
· The part of income spent on the good
· The time consumers have to buy the good
In a 2–4 paragraph Discussion Board post, discuss the following:
· Choose a product you have purchased in the past month from a clothing or shoe store.
· Describe how each of the 4 factors contributed to the elasticity of the good.
· Is the product considered elastic, inelastic, or unitary elastic?
· In a few sentences, what effect does the current supply and current demand have on this product?
· Comment on another student’s posting.
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
For assistance with your assignment, please use your text, Web resources, and all course materials.