Target Corp. sells a vast amount of products for all different types of uses. The prices of most of the products within Target will not change too much. There may be certain foods in the grocery section and some of the electronics that are pretty elastic but most of the products prices won’t differ too much unless Target lowers the price by putting something on clearance. Target is also in a position where they are buying products from the producers and selling them. Target does have a few items that are made by them and a lot of those products I would consider elastic but I don’t see the price changing. If prices of the products Target currently sells rise to a very steep price they may just decide not to sell them in stores at all. It also has a lot to do with the quality of the product being sold. There are many stores similar to Target and the products they sell, so demand may change depending on the quality and cost of the product. A consumer could also choose to go down the road to …show more content…
If Target were to raise the prices significantly on a lot of their products, consumers would go elsewhere with their business. Target is a company with plenty of competitors and businesses that carry the exact same products of them. Consumers might decide to pick them because of their reputation and that’s where they have always shopped, but it’s also because consumers know the prices and are comfortable paying that amount. If Target were to boost prices to a crazy amount, most consumer would have no problem shopping at another store with the same product at a lesser price. “Price elasticity of demand and supply tells us exactly how quantity responds to a change in price. As elasticity increases, quantity responds more to price changes,” (Colander, 2017). Unless some products supply decreases significantly Target shouldn’t have any issue with demand decrease because of the vast amount of products sold in