Tag Archives: discuss the impact of internet marketing on price elasticity of demand of goods and on profit margins of sellers.

ECO401 Economics GDB Solution Spring 2014

The Case: From an economic viewpoint, internet is the opponent of high prices and high profit margins. By greatly expanding the scope of the market, the internet effectively eradicates geographic boundaries, transactional costs and price competition especially for easily transported goods and services. For example, in the pre-internet era, a person looking for a car had to visit the local market or a well-known […]