WEEK 4 DQ MNG ECO Choose a product that you consume on regular basis. What are t

Question

WEEK 4 DQ MNG ECO

Choose a product that you consume on regular basis. What are the determinants of the demand for your chosen product? What are the substitutes for the product? What are the complements of the product? Is the price elasticity of demand elastic or inelastic for the chosen product? How would you characterize the income elasticity of demand for that product?

PLEASE ANSWER THE FOLLOWING QUESTIONS IF ALL ANSWERED CORRECTLY WILL RATE 5 STARS NO SCREEN SHOTS OR IMAGES OF RESPONSE. PLEASE TYPE YOUR ANSWER OR UPLOAD DOCUMENT IF REQUIREMENTS MENTIONED ABOVE ARE NOT MET I WILL GIVE A NEGATIVE RATING

Explanation / Answer

let choose the product TEA.  

Determinants of demand -

1) Income . 2) taste and preference . 3) price of substitute goods . 4) future expectancy of price.

COFFEE is the subsitute of my product TEA .

SUGAR is the complements of the product TEA.

The price elasticity of demand is elastic because whenever the price increase or decrease, the quantity demanded also increase or decreases .

on the basis of income and quantity demanded i characterize the income elasticity of demand. that is TEA having a positive income elaticity of demand. if my income increase, i can consume more tea therefore quantity demanded of tea increase and vice-versa.

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