Answer to Question #69240 in Economics of Enterprise for Jaymart
one week before christmas day. mr. a decided to shop for gifts as giveaways to your price staff. but due to time constraints, you were able to do it on christmas eve. What is likely his price elasticity (ceteris paribus) economics
His demand is likely to be inelastic because of lack of time and supply on Christmas eve and great necessity of presents. In this situation demand for presents would not decrease correspondingly with a rise in price.