4 ms·
Yes, I should have been more thorough in proofing my post. Demand doesn't change because of elasticity; the quantity demanded changes. If calculated, they may
by chrisgoodrich 17y ago
Yes, I should have been more thorough in proofing my post. Demand doesn't change because of elasticity; the quantity demanded changes.
If calculated, they may not have been able to see the full effect of this change as the calculations (like you state) do not take into account customer perception. Although not seemingly a large change, the $15 change in price can make a huge impact in such highly elastic markets.