Question

The COVID-19 has led to many changes in spending behavior of consumers. They seem ready to buy many such things even at higher prices which otherwise they would have been less inclined to buy. In relation to the said change, please identify such three products/services having undergone a fundamental shift in demand responsiveness in respect of their prices (Price elasticity of demand). Each instance should be explained with example clearly demonstrating the change in price elasticity of demand between now and the past before outbreak of pandemic.

Answer 1

Answer:

Consumer spending is on the decline, as shoppers reprioritize their finances and change their purchasing behaviors in the wake of COVID-19.