The price elasticity of demand is people’s responsiveness of quantity

June 10, 2021

The price elasticity of demand is people’s responsiveness of quantity demanded (or consumption) when there is a change in price.

Respond to the following:

Identify the determinants of the price elasticity of demand. Explain each one.
Determine whether each of the following items is elastic or inelastic: bottled water, gourmet coffee, Apple cell phones, and gasoline. Explain your reasoning.
Distinguish between a necessity and a luxury.
How are the price elasticity of demand and total revenue related? Why is the price elasticity of demand important to pricing?

Your initial post should be a minimum of 300 words.

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The price elasticity of demand is people’s responsiveness of quantity

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