The Walt Disney Company 2) calculate the price elasticity of the main product or service, create...

The Walt Disney Company

2) calculate the price elasticity of the main product or service, create a graph of the product or service demand curve.

Site source if one was used.

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Expert Solution

Ans :

Calculate the elasticity of demand is equal to percentage change in quantity demanded of product or services devided by the percentage change in the price of the product or services.
And small change in the price leads to large change in quantity demanded, that is price is to be elastic.
%change in quantity >% change in price %change in quantity demanded / %change in the price > 1 = Elastic
Demand curve of the product :
In the below graph in horizontal axes shows the quantity of product and verticle axes shows the price of the product and curve is shows the demand curve. that is define bye the price and quantity, if the price will goes up then quantity will decrease viseversa.
in the below graph if price of product is 1 then quntity of products is 14 that means higher demand of the product but at the 7 price, the quantity will be 2 product that is demand is low of the product. and below graph curve shows the demand ciurve which is downward sloping.

Thank you.....

Rahul Sunny answered 1 year ago

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