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Supply And Demand

Supply And Demand

Submitted by • July 10, 2013

The main consideration in price elasticity via the necessities is on the price changes. Price changes of goods that can be used on behalf of the expensive ones play a major role in determining the price effect. In a situation whereby the price of a substitute good changes results is that the demand of the original commodity will eventually change bearing the same effect. Consider, if the price of coffee goes up, consumers will tend to buy more of tea than coffee. The situation will be same simply because incase the price of tea reduces, the consumers will go back to normal situation whereby they will tend to buy more of the original product over the other, (Tomlinson, 2011).

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Voted by maryvanzy

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