This activity is important because marketing managers want to know how sensitive consumer demand is to changes in a product’s price. Price elasticity of demand measures consumer demand reactivity to pricing changes and is expressed as follows:

Price Elasticity of Demand

This activity is important because marketing managers want to know how sensitive consumer demand is to changes in a product’s price. Price elasticity of demand measures consumer demand reactivity to pricing changes and is expressed as follows:

Price elasticity of demand (E) =    Percentage change in quantity demanded/ Percentage change in price

The goal of this exercise is to demonstrate your understanding of price elasticity of demand by calculating and classifying the price elasticity of demand for Apple products.