Choose a product or a service that is elastic or inelastic and ask 10 students a
ID: 1104911 • Letter: C
Question
Choose a product or a service that is elastic or inelastic and ask 10 students about their consumption behavior if the price change. The following questions should be answered in your write up, 1. How much is their current consumption of the product or service at the current prices? (internet service on mobile phones) 2. At what price would they change their consumption behavior? (i.e. double, triple). 3. If the prices reached that level where they will change their consumption behavior, how would they do it? (i.e. move to cheaper substitute) 4. How does their behavior change in the short run versus long run? 5. If the Value Added Tax proposed is implemented, how would they change their consumption given the current prices? (i.e. reduce, increase, remain the same, move to cheaper product) My survey on internet service on mobile phones: Student(1) 1) 150 AED monthly 2) They will change consumption if it doubles or triples 3) Another package or another company service 4) In long run, customers will be flexible and adjust their consumption to price increase. Short run, they won’t accept changes 5) Remain the same Student(2) 1) 90 per month 2) If it doubles or triples I will not use it 3) Yes, I would change to another service 4) In long run, customers will be flexible and adjust their consumption to price increase. Short run, they won’t accept changes 5) Remain the same Student (3) 1) My consumption for internet service on mobile phone is 250 AED per month 2) If it doubles or triples I will not do this internet service on my mobile 3) I will go for cheaper internet service or check other company 4) In long run, customers will be flexible and adjust their consumption to price increase. Short run, they won’t accept changes 5) Remain same Student(5) 1)300 AED per month 2) If it doubles or triples I will not do it 3) go for cheaper internet service 4) In long run, customers will be flexible and adjust their consumption to price increase. Short run, they won’t accept changes 5)remain the same Student(6) 1) 250 monthly 2) Yes 3) Another internet service 4) In long run, customers will be flexible and adjust their consumption to price increase. Short run, they won’t accept changes 5) Reduce Student(7) 1) 120 AED monthly 2) If it doubles, I will stay on my package but if it triples I will stop it 3) Another package or another company 4) In long run, customers will be flexible and adjust their consumption to price increase. Short run, they won’t accept changes 5) remain same Student(8) 1) 50 AED monthly 2) I will not stay if it doubles or triples 3) Another package 4) In long run, customers will be flexible and adjust their consumption to price increase. Short run, they won’t accept changes 5) Move to cheaper product Student (9) 1) A lot, like like almost more than 10 hours a day 2) If tripled 3) Use other cheaper methods 4) Long run cheap consumption , but short run a bit expensive 5) It will reduce Student (10) 1) 2 AED per day 2) I will not use it if it doubles or triples 3) Other package 4) Long run cheap consumption , but short run a bit expensive 5) Move to cheaper product
Explanation / Answer
As the data is available through survey it can be presented average wise or percentage wise that 60% students have internet service usage in the range of 60AED to 150 AED monthly and then summarize the whole report through percentages.If a definite answer is expected then a fixed percentage will determine the yes or no answer.