Group items tagged

This article discuss the value of the price elasticity of demand for the iPhone. If calculated according to the equation for price elasticity of demand, the iPhone would have a brand elasticity of 4.7, which means that Apple would lose almost 4.7 percent of iPhone sales for each corresponding 1 percent increase in price.

This article talks about how teams price their tickets in the inelastic portion of their demand functions. To ensure maximum attendance and revenue, they lower the ticket price in order for more people to buy.

An article about the elasticity on the Super Bowl Ticket prices. Increases from $1,250USD -> $2,600USD and $950USD -> $1,500USD. It shows that teams want to charge more per seat instead of filling up all the seats; they prefer a high elasticity

NFL Commissioner Roger Goodell, Giants' co-owners Steve Tisch and John Mara, Jets owner Woody Johnson, David Tyree, former Jets player Emerson Boozer, former Jets player Curtis Maritn, CEO of the NY/NJ Superbowl Host Committee Al Kelly attend the 'Join The Huddle' Road To Super Bowl XLVIII Kick Off Mobile Tour [...]

This article talks about the demand of housing and the problems of estimating income elasticity of demand

A few weeks ago the Nicholls Worth ran this article about Jindal's plan to change the structure of taxation in Louisiana, moving away from income taxes and toward sales taxes. More recently, more details of the governor's tax proposals have been released, as we see in this article from the Baton Rouge Advocate.I believe it is very interesting.

This article talks about the price elasticity of demand on gas.

This article talks about how the PED of tobacco is not as inelastic as once previously thought. The price of tobacco is increasing due to the government adding taxes, and because of the large increases in prices, the demand for tobacco is decreasing.

This article describes the findings of Lanre Kassim of the University of Kent, who has found out that the trade liberalisation of economies in sub-Saharan African countries has not been able to affect the YED of imports and exports, meaning that trade liberalisation has not significantly changed the rate of change of income in these countries. However, Kassim states that PED of exports and imports has increased, and thus a significant change in demand can be recognised, however little the change in total income may remain.

Due to the rise in cost for Netflix of obtaining contracts for movies, Netflix has compensated by increasing the price of its DVD mail-service. However, Netflix's mail-order subscription service is neither a necessity nor without heavy competition, hence it has a low PED. This has caused Netflix to see a drop in monthly subscribers to the service, as people switch to less expensive options or competitors.

This article discusses the argument that is ongoing between East Anglian MPs concerning the implementation of a toll road, and one such MP argued that demand for the toll roads is not inelastic, as drivers would take alternative routes to the toll road, and thus this opportunity of a substitute makes it inelastic.

This is a slightly older article from late 2012. Apple increased the minimum price for paid apps in the European app store from 0.79€ to 0.89€. The incentive behind this change was to match the US$0.99 equivalent in minimum price. The demand though did not change much as the price change was minimal, and it only applied to a small fraction of all apps.