Discussion Post: Principles of Microeconomics
The price elasticity of demand is people's responsiveness of quantity demanded (or consumption) when there is a change in price.
Respond to the following:
a) Identify the determinants of the price elasticity of demand. Explain each one.
b) Determine whether each of the following items is elastic or inelastic: bottled water, gourmet coffee, Apple cell phones, and gasoline. Explain your reasoning.
c) Distinguish between a necessity and a luxury.
d) How are the price elasticity of demand and total revenue related? Why is the price elasticity of demand important to pricing?
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.