![]() On the other hand, when gas prices are higher, people will typically drive less or be more willing to explore other forms of transportation. When gas is relatively inexpensive, people will be more willing to drive and use their car as their primary form of transportation. This behavior can be easily observed with changing gas prices. When the price of a good decreases, the number of people who are willing to buy that good will directly increase.Īt the same time, when the price of a good increases, fewer people will be willing and able to buy that good – even if that good is something that most people consider to be essential. ![]() There is no denying that when the price of something changes, the quantity demanded for that product will also change. ![]() How to Calculate Price Elasticity of Demand
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