Hovis Elasticity

The brand of Hovis bread is losing money while raising its price. This single statement shows that Hovis has a very elastic price of demand. Since the prices are going up to unprecedented numbers, many consumers are responding strongly and are buying less of the brand. Also, the rise in price of Hovis went up before the other brands of bread. Therefore, the substitutes’ prices were still lower, which meant that more people would buy the cheaper bread. This again shows the high elasticity in demand of Hovis because the prices of the substitutes made the consumers respond.



No Responses to “Hovis Elasticity”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: