Untitled Haiku Deck
Published on Nov 18, 2015
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#4 HOW TIME EFFECTS PRICE ELASTICITY OF DEMAND
BY: SHANNON BRENNAN, MIKE DESALVO, STEPHANIE MAYER, AND LIZA SHAPIN
Photo by andres.moreno
1. Time Period considered.
2. Elasticity tends to be greater over the long run because consumers have more time to adjust their behavior to price changes. S.M.
iPhone 6:
Something that you want that has demand, but people are going to wait to buy it. Demand is still constant, so it is elastic. M.D.
Cigarettes:
Price increases on a pack, smokers will try and quit in order to save money. S.B.
Photo by Werner Kunz
Gas:
If the price of gas rises rapidly, you will still buy the same amount of gas. However, if you wait and get a new car, then you demand for gas lowers. L.S.
Photo by Pete Prodoehl
