Ashford University the Price Elasticity of Demand Essay

The price elasticity of demand is people?s responsiveness of quantity demanded (or consumption) when there is a change in price.Respond to the following:Identify the determinants of the price elasticity of demand. Explain each one.Determine whether each of the following items is elastic or inelastic: bottled water, gourmet coffee, Apple cell phones, and gasoline. Explain your reasoning.Distinguish between a necessity and a luxury.How are the price elasticity of demand and total revenue related? Why is the price elasticity of demand important to pricing?