Consumer Demand and Elasticity
AutoEdge consideration to relocating their manufacturing process to America and increase the price of its good will affect their sales. Consumer demand is some products that a customer is willing and able to buy. AutoEgde manufactures engines and transmission parts. These are luxury goods. Elasticity is concerned with interpreting how price changes with the demand of a good or service (Ahuja 2008). The following discussion will evaluate whether elasticity of auto parts is; relatively elastic, relatively inelastic, unitary elastic, perfectly elastic or perfectly inelastic.