Estimating the Elasticity of Demand

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Here is a look at the simple demand elasticity formula:

Elasticity of Demand = Percentage change of quantity demanded / percentage change in price

Elements that Impact Price Elasticity of Demand
Here is a look at the factors that have an impact on the price elasticity of demand:

Urgency of Product
The elasticity of demand also depends on how urgently one requires a product. For instance, you may be planning to replace your old laptop with a new one because it may not be working fine. Now, if the brand you want jordan phone number list to purchase it from increases the laptop price, you may still go for it because you have an urgent requirement. On the other hand, if you were planning to purchase it just for an upgrade then you may wait for festive sales or other discount offers.

Alternatives Available in the Market
If alternatives of a product/ service are easily available in the market then its price elasticity of demand is likely to be more. For instance, if blue denim is available from several brands at almost the same price and quality, then the brand that increases its price is likely to witness a decrease in its demand.

Price Change Duration
If a brand offers a product at a lucrative price for a limited period, then it is likely to witness a sudden surge in its demand. However, if the offer lasts for a season or if the rates are slashed for an indefinite period, then the demand may not surge as drastically.