Tuesday 9 July 2013

The Determination of Elasticity

The one of the determination of elasticity would be luxuries and necessity. Necessity is the one that we need in our daily life. For example, Indah Water provide us water that we need, but we still need to pay it no matter what the price level are. Because we need it so that human are very sensitive in necessity.












Luxuries would be defined as people want. Human are more sensitive with luxuries because of their price. And when the price gone down, many people will go and buy. For example Louis Vuitton normal bag would be over $1000. But when the price drop to $700, many people will go and buy because they want and have opportunity to purchase at the low price level.

By= Herman Chan
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2 comments:

  1. Kingsley11 July 2013 at 00:29

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  2. Kingsley11 July 2013 at 00:31

    If Lv drop until $700 i trust that the demand sure will increase because LV is one of the the world's leading international fashion houses so if the price is remain the same there still got demand but not so many only.

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