Write your assignment as a business essay (use headings) with an introduction, body including sections related to the parts of the question, and conclusion. Use in-text references when you include information from sources. Add a reference list (one textbook and at least four scholarly references) after the conclusion. The word count (1,400 to 1600 words) is measured from the introduction heading to the end of the conclusion. Ensure you write academically using precise vocabulary, spelling and grammar.
Assignment Topic is:
Broad categories of goods and services tend to have smaller elasticities than particular brands of goods and services. For example, the demand for clothing is price inelastic but the demand for Tommy Hilifiger clothing is price elastic. [Do not use this example in your assignment.]
1. Explain the importance of price elasticity of demand for a business firm.
2. Choose a good or service –a general category and a particular brand.
3. Use an internet search to find the price elasticity of demand for the general category and estimate the price elasticity of demand for the particular brand. Include the url(s) in your in-text referencing.
4. Discuss the factors affecting price elasticity of demand for your good or service -both the general category and the brand. Use two supply and demand diagrams to demonstrate your example. Explain the diagrams.
5. Explain what happens in each case if there is an increase in supply in the industry –contrast the resulting changes in both price and quantity.
Broad categories of goods and services tend to have smaller elasticities than particular brands of goods and services. For example, the demand for clothing is price inelastic but the demand for Tommy Hilifiger clothing is price elastic