What is quantitative data?
Numerical information that can be analysed using statistics.
Examples include sales figures, market share percentages, and demographic statistics.
What is qualitative data?
Non-numerical information, such as information from in-depth interviews or focus groups.
This type of data provides insights into consumer behavior and preferences.
What does price elasticity of demand measure?
The sensitivity of demand to a change in price.
A higher price elasticity indicates that demand significantly changes with price variations.
What is the formula for calculating price elasticity of demand?
% change in quantity demanded / % change in price.
This formula helps businesses understand how price changes affect consumer purchasing behavior.
What does income elasticity of demand measure?
The sensitivity of demand to a change in income.
This concept indicates how demand for a product changes as consumer income levels change.
What is the formula for calculating income elasticity of demand?
% change in quantity demanded / % change in income.
A positive income elasticity suggests that the product is a normal good, while a negative one indicates an inferior good.
