Price Elasticity of Demand

How much a company can expand

How much demand changes when price changes

Total sales in a market

Number of competing brands

Demand rises

Demand stays the same

Demand falls

Supply increases

Designer perfume

Movie tickets

Groceries like bread or toilet paper

New technology gadgets

Number of workers

Price elasticity

Value of currency

Supply chain only

Setting a fixed price for a year

Raising gym membership prices and watching for consumer response

Hiring more workers

Reducing advertising

It's a necessity

It has many alternative brands

It’s government regulated

It’s free

Ignore price changes

Promote cost-saving benefits

Increase advertising only

Eliminate branding

Increased dramatically

Stayed the same

Declined, as consumers switched to cheaper alternatives

Were government subsidized

To appeal to consumers with less money and maintain market share

For environmental reasons only

Due to supply shortages

To test the market

Spending has shifted from services to goods

Consumers are only buying luxury items

Spending is shifting from goods to services and experiences

A dramatic decline in travel