is telephone service elastic or inelastic based on the determinants of elasticity of demand why?
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Answer:
e Elasticity of Smartphones
Price Elasticity of Smartphones
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Moody Boles
Thu Aug 23 2018
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Price Elasticity
Of Smartphones
PriceElasticity
The price elasticity is the degree of responsiveness of the quantity demanded of a good to changes in price of a good. ... Conversely, a product is inelastic when the consumers are not sensitive towards the changes in price . Smartphones, which is considered a luxury good, has anelastic demand.
As we have seen time and again, the demand for the iPhone is inelastic. Not completely, no. But quite inelastic compared to other platforms.
Are mobile phoneselastic or inelastic ?
CustomerOverview
the mobile phone market is pretty elastic - it's not a necessity and there are already a lot of phones out there, so if prices were to go up fewer people would buy new phones and fewer people would upgrade their existing phones (the very definition of elastic).
On the other hand, for certain professions mobile phones are very necessary. On-call doctors, many upper-level businesspeople, anybody who must be reachable as a part of their work, they all will exhibit inelastic buying behavior. Whether the phone cost $100 or $1000, if they have to have it to do their job, they'll spend the money so they can continue to work.