00:01
Okay, so i see that you need help with this, and it says substantiate the type of price elasticity of demand that would be most applicable to products offered by woolworths and discuss its importance to the woolworths pricing managers.
00:33
Pricing managers.
00:40
Okay, so for price elasticity of demand measures how the quantity, demanded of a good changes in response to a change in its price.
00:48
It's calculated as the percentage change in the quantity demanded divided by the percentage change in price.
00:56
There are two main types of elasticity.
01:03
There is elastic demand and inelastic demand.
01:18
Okay.
01:20
Elastic demand occurs when the small change in price leads to a larger change.
01:26
In quantity demanded.
01:28
Inelastic demand occurs when the change in price has a relatively small effect.
01:34
So large effect, small effect.
01:45
The types of products offered by woolworth, a major retail company, they offer a wide range of products such as groceries, clothing, household goods...