00:01
So the question is what factors impacts the elasticity of demand or demand elasticity for the product? one of them is price level.
00:16
They higher the price of something and by higher means higher compared to the income, right? they higher the price of something is going to be more elastic, okay? demand is going to be elastic.
00:31
If something is too cheap compared to your income, you don't care if it prices, changes, you still buys it, right? so price level, type of the product and service, right? and service, right? again, it is how essential it is for you, right? that impacts electricity of the demand.
00:56
Is it life saving or no? income level.
01:03
Again, the higher income compared to the price of something, it's going to be, it's going to be your type of problem, make it inelastic.
01:21
It's life saving.
01:22
If the income level is high, again, it's going to be inelast.
01:30
Sorry...