Answer to Question #255946 in Marketing for koketso

Question

.4.1 Assume that The Sneaker Shack is the only shoe cleaning service to offer the pick-up

and delivery and the same day return of shoes, will the demand curve for The Sneaker

Shack be elastic or inelastic (1 mark)? Motivate your answer by providing a specific

example. (1 mark). (2)

1.4.2 Assume Levingers launches their operation in the same areas that The Sneaker Shack

is operating in with similar services. Considering this, will the demand curve for The

Answer 1

1.4.1 The Sneaker Shack's demand curve will be inelastic. Because The Sneaker Shack is the only shoe cleaning service that provides pick-up and delivery as well as same-day returns, a significant change in price has minimal impact on the quantity needed.

1.4.2 The Sneaker Shack will have an elastic demand if Levingers opens their doors in the same places as it provides identical services. A little change in the pricing of The Sneaker Shack's items has a significant impact on the amount needed. Buyers might opt for a less expensive alternative given by Levingers.