Price elasticity of demand is defined as a measure of the extent to which the quantity demanded of a good or service changes when the price of a good or service changes (and all other influences on buyers plans remain the same).

2.1 Pick a business that you know something about or can find information on. Describe the business and its main product or service. (3)

2.2 For each of the factors that influence the price elasticity of Demand, describe how your main product or service (described in 2.1) is affected. Does the factor indicate demand is more elastic or more inelastic?