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The Price Sensitivity of Demand  Form

The Price Sensitivity of Demand Form

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so let's talk about demand the law price sensitivity and then just talk about what demand looks like in luxury markets in oligopoly markets this my friends is the demand curve thank you very much you've probably seen this a million times and it's a straight line it's not a curve but Who am I to judge and the law of demand says that as price increases the quantity demanded decreases so I have here on one axis the price and when the price is high the quantity demanded is low when the price is lower the quantity demanded is high one of the issues when we're dealing if demand is the issue of price sensitivity or price elasticity and price elasticity is how sensitive demand is to changes in price when price is elastic highly elastic a small change in price leads to a large change in quantity demanded and that's represented in this little graphic by a relatively flat line is regardless of what the price is the quantity demanded is girth yeah th

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