When calculating the elasticity of a product, it is necessary to take into account the price factors of the demand curve. The main stage of calculations is the comparison of the percentage ratios of the required quantity of goods or services with the percentage change in the factors influencing demand.
The price factors of elasticity of supply and telegram dating philippines demand are related to each other. Here are some of them:
Nature of the product. Most often, those products that are considered essential have a low value of the indicator in question. While luxury goods are quite elastic in terms of supply and demand.
Availability of close substitutes. Products that are produced in conditions of tough competition have more elastic demand. Consumers easily change their choice in favor of one or another analogue. Those products that have no alternatives have inelastic demand, since consumers are forced to buy them.
Variety of applications. Those products that have multifunctionality have a more elastic demand compared to goods intended for a single purpose.
Price factors of demand elasticity
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Buyer's income level. If consumers are dominated by people with above-average income, they will not respond to price increases for the product category they are interested in. In this case, elasticity will be low. In another case, when the income level of potential buyers is low, elasticity will be high.
Time horizon. In the long run, the demand for each product becomes more elastic than in a limited period of time. The consumer changes his tastes and habits over time, so when the price of a product increases, demand becomes less elastic during this period. But this will not always be the case, because over time the buyer will be able to solve the problem in his own interests, and the demand for the product will again become elastic.