Analyze the determinants of the price elasticity of demand and determine if each of the following products are elastic or inelastic:
- Bottled water
- Cookie dough ice cream
- Fresh green beans
In your analysis, please make sure to explain your reasoning and relate your answers to the characteristics of the determinants of the price elasticity of demand.
Elasticity is a measure of responsiveness on quantity demanded or supplied as a result of a change in price or other conditions. Price elasticity measures the difference in the amount requested or provided as a result of a change in price alone (Goodstein& Polasky, 2005). The following are some of the determinants of price elasticity of demand. First, availability of close substitutes, if there are close substitutes, the demand will be elastic and vice versa. Secondly, the…………………
APA 515 words