Is the demand curve shallow or steep? What does this mean about the elasticity of the demand for memberships?

Question

Bitsy

Business

22 July, 12:49

Is the demand curve shallow or steep? What does this mean about the elasticity of the demand for memberships?

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Victor · Answer 1

The demand curve is shallow, which means the elasticity of the demand for memberships is inelastic.

Explanation:

Among goods with more elastic demand, and for those with lower demand, the demand curve becomes shallower (closer to horizontal) and steefer (closer to vertical). A new demand curve will be drawn if there is an unforeseen factor of quality or quantity.

It is recognized in economics as a ' demand elasticity ' - how open customers are to shifts in costs. By general, if demand is elastic, a price decrease would increase consumer spending with the percent increase by supply more than the percentage decline in costs. The price increase will occur according to the aforementioned parameters.

Nevertheless, Rick Caro, ceo of Management Vision, a New York city health club, argues that the items are not simply facilities such as memberships of health clubs.