Elasticity of demand of the Czech consumer

• Main Authors: Jiří Luňáček, Vít Feldbabel
• Format: Article
• Language: English
• Published: Mendel University Press 2011-01-01
• Series: Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
• Subjects: demand; elasticity of demand; statistics evaluation; questionnaire investigation; modelling
• Online Access: https://acta.mendelu.cz/59/7/0225/

The price elasticity of demand enables to set the real “correct price” to the seller guaranteeing the highest income. Despite the fact that the price elasticity of demand is very important in the economic practice, no work that would deal with it in greater details seems to be elaborated till now. The available sources show practically only and exclusively coefficients of the price elasticity of demand in the United States. These coefficients can naturally be utilized, but for certain goods only (e.g. salt, etc.), where the demand is the same irrespectively of where we find ourselves globally. There are certain products and services where the demand is determined by the socio-cultural aspects following from certain traditions of the country in question. The values established for conditions of the Czech Republic are certainly available nowadays, but with respect to expensiveness and scope of these researches we cannot consider them comparable with the results from the USA.Objective of this paper is to draw curves of demand of 20 commonly used commodities in the Czech Republic and to determine coefficients of the price elasticity of demand afterwards, from which the basic recommendations for their sellers will follow. In light of the facts above comparison of these coefficients with the data from the USA would be very interesting to be able to create the picture about dissimilarities in demand of the average Czech and American consumer.