Price Elasticity Of Demand Is Very Low Marketing Research

Very Low Price Elasticity of Demand
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Very Low Price Elasticity of Demand
Gasoline is a product that forms a large part of my budget and also tends to have a very low demand price elasticity. According to Mankiw (2008), price elasticity measures how a change in price affects the quantity demanded. Therefore, there is a low price elasticity of demand if the change in prices causes only slight changes in the quantity demand. This is contrasted to high price demand elasticity where a small change in price leads to a substantial change in the quantity demanded of a product. There exist factors that determine whether the price elasticity of demand for a product will be low or high.
As for my case of gasoline, the price elasticity of demand is low because the product can be considered a necessity. When driving becomes a necessity, there will be little effect on the amount of gasoline demand if there is a change...