Question

Select a product or service and discuss your subjective estimate of its price elasticity of demand. Is it highly elastic or inelastic, unitary elastic, etc.?

Does it matter if you select a specific brand of a product, such as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline versus gasoline in general?

What is the relationship between price elasticity and the effect on total revenue if the price of your product or service goes up or down?

Answer 1

I choose basic SALT since it is necessary for all, therefore, it has less elastic demand.

Yes, it matters if we select a specific brand of a product, such as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline versus gasoline in general due to their market demand and their price elasticity.

If price elasticity is greater than 1 then Total Revenue and Price has an inverse relationship and If price elasticity is less than 1 then Total Revenue and Price has a direct relationship.