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katrin [286]
3 years ago
12

Suppose that Juan Carlos is filling out a survey that he received in the mail. The survey asks him what he would do if the price

of his favorite toothpaste increased. Juan Carlos reports that he would switch to a different brand. The survey asks what he would do if the price of all toothpastes increased. Juan Carlos reports that he must use toothpaste, so he would have to adjust his spending elsewhere. These examples illustrate the importance
Social Studies
1 answer:
zepelin [54]3 years ago
3 0

Answer:

the definition of a market in determining the price elasticity of demand

Explanation:

In economics, the price elasticity of demand is the measure used to determine the responsiveness and the elasticity of a quantity demanded for a good or a service to increase in the price when nothing but only the price of the product changes. It is the measure to show the demand of a product in relation to the price change of the product.

In the context, Juan Carlos is is filling up a survey regarding the demand or purchasing of toothpaste when the price of the toothpaste changes. Thus this is important to study the price elasticity of demand of a product in the market economy.

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