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Price, Advertisement and income are the different types of elasticity of demand.
1. Price elasticity of demand affects a business's ability to increase the price of products.
2. Advertising elasticity is a measure of an advertising campaign's effectiveness in generating new sales
3. Income elasticity of demand measures the relation between a change in quantity demanded and a change in income.
I had read in Economics in BBS (bachelor of business studies) course . ...:)
Determining the demand elasticity plays an integral role in the process of business development. Because it helps us in recognizing the need of our target audience.
'Demand Elasticity' In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables.
The degree to which demand for a good or service varies with its price. Normally, sales increase with drop in prices and decrease with rise in prices. As a general rule, appliances, cars, confectionary and other non-essentials show elasticity of demand whereas most necessities (food, medicine, basic clothing) show inelasticity of demand (do not sell significantly more or less with changes in price).
Also called price demand elasticity.
