Consumers will buy more of a product when its price declines and less when its price increases” (McConnell, Brue, & Flynn, 2015). The reason this situation happens is because of the elasticity of a product. Price elasticity can either be of demand or supply, elastic products are much more price sensitive than inelastic products.
For example buying groceries is an elastic product. Consumers will buy more of a certain product when it is on sale or they come across a discount coupon for a certain store. More of a specific product will be bought, especially at the store with the advertised coupon. Why would the consumer go to the other store with the same product if it is not for sale? Does total revenue predict price elasticity/inelasticity?
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