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Let me rephrase the question: Why is demand for jewelry elastic? Or why is price sensitivity high for jewelry?
Firstly, the consumer has a low/nil income. The lower the income, the higher the probability that he/she has high price sensitivity. E.g. if a student is buying jewelry, he/she'll probably go right for the cheaper range of jewelry and not the branded jewelry. On the other hand, if the consumer is rich, he/she won't care so much about the price of the jewelry.
Secondly, the jewelry item has many close substitutes for it. If there are many close (and cheaper) substitutes, the consumer has more choice. So it is likelier that he/she might choose the cheaper substitutes if he/she thinks that one item is priced out of the market.
What else can I help you with?
Demand and its types?
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
What economic concept helps explain the changing demand for jewelry?
The economic concept of "elasticity of demand" helps explain the changing demand for jewelry. This concept refers to how sensitive consumers are to price changes; for luxury items like jewelry, demand can be highly elastic. When prices rise, demand may significantly decrease, while a drop in prices can lead to increased demand. Additionally, changes in consumer income and preferences, influenced by trends and cultural factors, further affect the demand for jewelry.
Is fruit elastic or inelastic demand?
elastic
Is it true that the demand curve is elastic in this region?
Yes, the demand curve is elastic in this region.
Different degrees of elasticity of demand?
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
Demand and its types?
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
What economic concept helps explain the changing demand for jewelry?
The economic concept of "elasticity of demand" helps explain the changing demand for jewelry. This concept refers to how sensitive consumers are to price changes; for luxury items like jewelry, demand can be highly elastic. When prices rise, demand may significantly decrease, while a drop in prices can lead to increased demand. Additionally, changes in consumer income and preferences, influenced by trends and cultural factors, further affect the demand for jewelry.
When demand is elastic?
The demand is elastic when the price is low. So people will buy more good so that it's demand will become more elastic. Moreover ,the demand is elastic when there are some new inventions.
When a firm's marginal revenue is zero what can be said about the elasticity of demand for the output of the firm A. Demand is inelastic. B. Demand is elastic. C. Demand is unit elastic.?
Demand is unit elastic.
Is fruit elastic or inelastic demand?
elastic
Difference between elastic and inelastic demand?
difference between elastic and inelastic demand
Is it true that the demand curve is elastic in this region?
Yes, the demand curve is elastic in this region.
What are the types of price elasticity of demand?
there are five types.1).perfect elastic demand,2)perfect inelastic demand,3).relatively elastic demand,4).relatively inelastic demand4).unity elastic demand
Different degrees of elasticity of demand?
Perfectly elastic demand. Relative elastic demand. Unit elasticity of demand. Relative inelastic demand. Perfectly inelastic demand.
Demand for wine is elastic or inelastic?
Highly elastic.
How is elastic demand represent graphically?
A perfectly elastic demand is represented on the traditional supply and demand graph with a straight horizontal line. An elastic demand that is not perfect would be represented as any line with a slope between 0 and -1.
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
