Details of elasticity of demand with example
Elasticity of demand is the change in
demand of a good or service based on the
change in price for that good or service.
Demand usually increase when price goes
down and decreases when price goes up.
example- Daily Express. If the Daily express
increases in price, there are similar
newspapers people will switch to. For
example, the Daily Mail or Daily Mirror.
If it was a newspaper like the Financial
Times of the Economist, demand would
be more inelastic, as there is no close
substitute to the Financial Times.