Economics is a social science that studies the collection, allocation and distribution of economic resources. Business owners use the study of economics to help them make business decisions. Not only ...

A customer normally buys a cup of coffee and one doughnut on the way to work in the morning. However, for one day only, the coffee shop has dropped the price of doughnuts by 30 percent. The customer ...

Learn how consumer goods vary in price elasticity, with factors like substitute availability and brand influence affecting demand sensitivity.

Demand elasticity is a phenomenon where demand for a specific good or service changes depending on factors such as how it is priced, whether alternatives are available or local income trends.

The law of supply and demand explains how changes in a product's market price relate to its supply and demand. Demand for basic necessities is less responsive.