Question

Price Elasticity of Demand:
Choose a product that you regularly purchase and decide whether the demand for the product is elastic, inelastic or unit elastic based on your knowledge of price elasticity of demand. Explain the factors that you think cause the good or service to be elastic, inelastic or unit elastic in detail (related to the determinants of price elasticity of demand). Also, describe the shape of the demand curve and explain what producers in this industry should do to their prices to increase their total revenue. Please use an original example (not one that has been used in the textbook/power points) or you will lose points. Remember, you must do your own work in this class on all assignments so resist the temptation to use outside websites to copy information as that would be plagiarism. Go to your book and power points first as a resource for your research.

Please help? I don't know how to start this . Just for a few paragraph ...I choose to talk about Make up foundation.

Answer 1

I am choosing a product which is very common among females or we can say it almost necessary for them .Yes The Makeup foundation which is among the most used product among females.The product can be said elastic or inelastic demanded based on the needs by the customer . If the price is change highly then is elasticaly demanded andd if the price is varying with low percentage then it is inelastically demaned .Although in my case , the demand of make up foundaton according to me inelastically demanded as there are lot of competitive firm which produces such product at large level some are globalized companies and also the price difference between different brand is not too high , it is moderate .

The demand is increasing as the people who were not using this product fully has started using it because of the factors they deal with like climate , whether , events , weding etc . And it is very common now . If the producer wants to increase it total revenue then it should focus on cheap and best strategy whihc will increase the items sold and decrease the unit price whihc will overall increase the total revenue of the firm

Have a good day !