Substitute goods can really change how things work in university supply chains. Here’s how it plays out:
Price Sensitivity: When the price of something goes up (like textbooks), students might look for other options (like e-books). This shows that students are very sensitive to price changes.
Cross-Price Elasticity: We can figure this out with a simple way to look at prices.
If the price of textbooks goes up and students start to buy more e-books, we can see a positive relationship between the two.
Impact on Supply Chains: Suppliers need to pay attention to substitute goods. This helps them change their prices, keep enough items in stock, and plan their marketing to keep customers interested.
Substitutes keep the market competitive, and that’s an important lesson from studying microeconomics!
Substitute goods can really change how things work in university supply chains. Here’s how it plays out:
Price Sensitivity: When the price of something goes up (like textbooks), students might look for other options (like e-books). This shows that students are very sensitive to price changes.
Cross-Price Elasticity: We can figure this out with a simple way to look at prices.
If the price of textbooks goes up and students start to buy more e-books, we can see a positive relationship between the two.
Impact on Supply Chains: Suppliers need to pay attention to substitute goods. This helps them change their prices, keep enough items in stock, and plan their marketing to keep customers interested.
Substitutes keep the market competitive, and that’s an important lesson from studying microeconomics!