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Purpose Evaluate price elasticity of demand for a product you are familiar with.
DirectionsChoose a product wthathich you are familiar with. ( EGGS) Using the internet for research (please cite your source), what is the price elasticity of demand for this product ?
What does that mean with respect to a 10% increase in the price of this good?
What happens to quantity demanded?
Which of the 4 determinants of price elasticity of demand do you believe drives this outcome about the good's price elasticity?
If there is more than one determining factor, please explain your reasoning. [for many goods, all of the 4 determinants come into play - choose the one or two that you believe are most relevant).
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