The "concept of elasticity of demand" measures the relationship between a change in the price of a product and the corresponding change in the quantity demanded of that product. The elasticity of demand may be perfectly elastic, perfectly inelastic or somewhere between the two.Know More
Elasticity of demand is found by dividing the percentage of the change in quantity by the percentage of the change in price. If the quotient is zero, demand is perfectly inelastic, which means that a change in price yields no change in the quantity demanded. If the quotient is one, demand is perfectly elastic, which means that a change in price yields an equivalent change in quantity demanded. Most goods fall somewhere between perfectly inelastic and perfectly elastic. Businesses use demand elasticity to predict the effect of price on product sales.
Elasticity of demand is determined by several factors, including the availability of substitute products, the cost of switching between products, and whether the product is a necessity or a luxury. Products that have readily available substitutes tend to be more elastic than goods with few substitutes. Necessities tend to be more inelastic than luxuries. Products with high-switching costs are more inelastic than goods with lower-switching costs.Learn More
A railroad auction is an auction in which either railroad equipment or railroad memorabilia is sold. Sometimes these auctions are held as fundraisers for organizations tied to the railroad business.Full Answer >
When a company engages in mass marketing, it chooses to overlook differences among the various segments in its market and instead to appeal to the entire market with one uniform strategy or offer, and one example is the Coca-Cola television ads that appear during the winter holidays. The polar bears cavorting and drinking Coca-Cola are designed to appeal to just about everyone, and because Coca-Cola is a product that spans different niches in terms of popularity, this is a campaign that has proved successful over time.Full Answer >
The best places to sell first day covers is at a local dealer, which can be located by perusing the phone book for "stamps for collectors" or visiting collector societies to find dealership databases. Other avenues exist as well, such as pawn shops or online auctions, but the best way to sell valuable collectibles safely is to go through a face-to-face transaction, explains the American First Day Cover Society.Full Answer >
A marketing sample plan is a strategy a company develops to acquire information necessary to create an effective marketing campaign. Factors, including what kind of information is desired and the varying means of obtaining it, are all considered when creating a sample marketing plan.Full Answer >