1 Price elasticity of demand Income elasticity of demand Cross-price elasticity of demand Advertising elasticity of demand

2 ELASTICITY Refers to the tecnique of measuring the degree of responsiveness of quantity demanded due to change in a specific factor that affects demand

3 Price elasticity Measures the extent to which demand for a product changes due to change in its price.

4 Price elasticity If there is a small change in quantity demanded following a change in price, then demand is said to be price inelastic Demand is said to be price elastic if there is a large change in demand due to a price change

5 Elasticidad del precio Precio inelástico Precio elástico

6 Income elasticity Measures the degree of responsiveness of demand for a product following a change in the income level of consumers

7 Cross-price elasticity Measures the degree of responsiveness of demand for one product due to a change in the price of another product, such as substitutes or complements

8 Elasticidad cruzada Ej: si el precio de la cámara digital SAMSUNG baja, la demanda de SONY bajará tb.

9 Elasticidad cruzada: Sustitutos

10 Advertising elasticity Measures the degree of responsiveness of demand for a product following a change in the advertising expenditure for that product

11 Relación de la elasticidad con el ciclo de vida del producto El producto pasa por su ciclo de vida y su precio puede ser adaptado y cambiado en cada etapa. ej: Navidad Lanzamiento: Producto nuevo, costos y precios relativamente altos. Precio inelástico Crecimiento: La demanda crece, precio baja un poco. Va siendo de inelástico a elástico

12 Relación de la elasticidad con el ciclo de vida del producto Madurez: Clientes son más sensitivos a los precios. Estrategias de marketing Saturación: Clientes son muy sensitivos a los precios. Bajos precios Declive: Precios bajan extremadamente