In the past and present, things are not human, and in heaven and earth, only the country and mountains are not old.
These are the best times and the worst times.
This is also an era where if you don't work hard, you will be eliminated.
Born at the right time, in this era, we are forced to continue to study hard, not only history, literature, medicine, astronomy, geography, but also finance, management, economics, psychology and so on.
So today, let's study economics first.
What is "price elasticity"?
Open Baidu: Price elasticity refers to the degree of change in market demand caused by price changes. In short, when the price of a commodity goes up and down, will its demand increase or decrease? Whether it is a distributor or a retailer, it is necessary to understand the price elasticity of the goods they operate, so as to improve the investment efficiency of product promotion and make pricing decisions on promotional goods in a timely manner.
Let's take some examples in our daily lives and vegetable baskets to explain.
For ordinary people, pork is a meat food that is often purchased. Between 2018 and 2019, affected by African swine fever, the survival rate of live pigs declined dramatically, the market supply decreased, and the supply exceeded demand.
As the saying goes, "things are more expensive than rare". Swine fever leads to less supply of pig sources, making pork prices rise and supply outstrips demand, which is the law of commodity prices. So it is not surprising that pork rose to 28 yuan a catty at that time.
In the first half of 2020, it was a good time for the pork market to return to the cost, but no one ever thought that the new crown virus had broken out in China, various enterprises had suspended work and production, everyone stayed at home, and the economy was depressed. In this case, the price of pork is also inevitably not falling but rising.
Due to the increased demand for meat, the price increase will not affect sales. At this time, meat products, we call it low price elasticity.
Usually we walk on the street, the major supermarkets every holiday, store celebration, anniversary and other nodes will do all kinds of product discounts, sales and other promotional activities.
For example, edible oil, once the merchant discounts or buys five to get a mention, you originally planned not to buy, see the activity will think: anyway, edible oil is used at every meal, and now it is quite affordable, and it will buy five mentions. At this time, the commodity of edible oil, we call it the price elasticity is relatively large.
Another example is our daily necessities table salt, no matter the price, we need it every day, the purchase quantity will not change. We won't buy it because it's raised today, and we won't buy it because it's discounted today, so we'll buy it in large quantities and store it at home. Let's just say that table salt has no price elasticity.
Learning. To know is to know, not to know is not to know, is to know.