I find myself at the mall quite a bit and it’s beginning to do some serious damage on my credit card bill. Whenever I see those four big letters, S-A-L-E, I can’t hold myself back! Now I’m finding that I don’t really like the things I’ve purchased. Usually I’m a very responsible shopper, so why do I go so crazy at these sales?
Hey honey, I get it: it can be hard to hold yourself back! You may not realize it but walking past all those sale racks is so tempting because you have an elastic demand for clothing. This simply means that you have an unusually large response to a change in price. When you see a cute sweater that turns out to be $100 you don’t want to go for those triple digits. Then, its price drops, elasticity kicks in and you buy the sweater…and a second sweater.
On the other hand, my demand is inelastic for tickets to Beyonce’s formation tour! While the price of tickets may affect some people’s impulse to buy I’d do anything to get my hands on those tickets! Inelastic demand implies that despite a price change, the quantity I demand will remain the same.
So the next time you find a whole rack of clothing you want, it’s probably because you love the prices. With those slashed down digits it can be really tempting to purchase more, but beware because you may end up spending the same as you would with retail prices. Sadly, if your elasticity has really gotten out of hand you may want to consider avoiding the mall. Happy shopping!
Note: Question was created by the Ask Alexa team.