Price elasticity of demand (PED) is a measure of consumer responsiveness to changes in the price. Specifically, for a given
good, the PED indicates how sensitive consumers are to a change in that good's price. For some goods consumers are very
sensitive to price changes (quantity demanded changes substantially compared with the change in price). These goods are said
to have an elastic demand. For others, the quantity demanded does not change much (in percentage terms) compared with the
change in price. These goods are said to have inelastic demand.
Please answer these questions:
1. Prior to Hurricane lan, how would describe the demand for generators, grills, coolers, inflatable beds, batteries, bags of ice,
hotel rooms, and chain saws? Was the demand elastic or inelastic? Did the price elasticity of demand change due to the
storm? If so, how? Explain. What happened to the elasticity after the immediate emergency passed? NOTE: I'm not asking
whether the demand increased or not. I'm asking what happened to consumers' sensitivity to price changes.
2. Why is important for businesses to know the price elasticity of demand for their products? Explain and give examples.
Answer the questions above and then reply to two other posts by name, one of which must be a reply to one of my follow up
questions. Minimum word count is 150 for the initial post and 50 words for each of the other two posts.
I WILL GIVE BRAINLIEST TO YOU !!!
