{"content":{"sharePage":{"page":0,"digests":[{"id":"34839694","dateCreated":"1298643549","smartDate":"Feb 25, 2011","userCreated":{"username":"lsedlac1","url":"https:\/\/www.wikispaces.com\/user\/view\/lsedlac1","imageUrl":"https:\/\/ssl.wikicdn.com\/i\/user_none_lg.jpg"},"monitored":false,"locked":false,"links":{"self":"https:\/\/wrightslandofeconomics.wikispaces.com\/share\/view\/34839694"},"dateDigested":1532253424,"startDate":null,"sharedType":"discussion","title":"Price Elasticity of Demand","description":"What does Price Elasticity of Demand say about specific products and how does it affect a company's sales?","replyPages":[{"page":0,"digests":[{"id":"34840042","body":"With some products you can increase price and people don't change their demand, usually for more basic products like gas, bread, salt, stuff like that, are more inelastic because people need to buy this stuff no matter the price, so companies benefit from this because even if they raise their price, demand will not shift (as much). For more luxury goods like nice cars, ipods, computers, these goods are more elastic because if the price changes, people will increase\/decrease their demand accordingly because these goods aren't necessary so they can shift around their demand. Thus a company's sales will depend on whether they raise a price (quantity demanded will decrease) or lower the price (quantity demand will increase).<br \/>\n:)","dateCreated":"1298643833","smartDate":"Feb 25, 2011","userCreated":{"username":"lgruen11","url":"https:\/\/www.wikispaces.com\/user\/view\/lgruen11","imageUrl":"https:\/\/ssl.wikicdn.com\/i\/user_none_lg.jpg"}},{"id":"34840402","body":"If products are elastic, a change in price can cause a change in demand, which can be beneficial to a company. If goods are inelastic, raising the price will not change the demand and so companies that produce inelastic good, like salt, will have a constant demand regardless of price.","dateCreated":"1298644104","smartDate":"Feb 25, 2011","userCreated":{"username":"abuckar11","url":"https:\/\/www.wikispaces.com\/user\/view\/abuckar11","imageUrl":"https:\/\/ssl.wikicdn.com\/i\/user_none_lg.jpg"}},{"id":"34840978","body":"Depending on the elasticity of the product, its price should be lowered or raised to increase revenue. Weather to raise or lower the price is different for each specific product.","dateCreated":"1298644499","smartDate":"Feb 25, 2011","userCreated":{"username":"abuckar11","url":"https:\/\/www.wikispaces.com\/user\/view\/abuckar11","imageUrl":"https:\/\/ssl.wikicdn.com\/i\/user_none_lg.jpg"}}],"more":0}]}],"more":false},"comments":[]},"http":{"code":200,"status":"OK"},"redirectUrl":null,"javascript":null,"notices":{"warning":[],"error":[],"info":[],"success":[]}}