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When the concept of the Elasticity of Demand is often discussed, the initial purchase price of a good is usually the only expense used to measure a good's change in demand relative to it's change in price.
Are there other expenses, such as maintenance/repair expenses that affect demand elasticity as well? Assuming a good is a luxury, and is sold by a firm that operates in a market that is in monopolistic competition, theoretically, if a consumer has information about maintenance and repair expenses, and has to choose between 2 goods, both have the same initial expense. However, Good A has an average maintenance expense of 10$/year, while good B has an average maintenance expense of 15$/year, wouldn't the consumer's demand for good A be more inelastic compared to their demand for good B? (Assuming this market operates in isolation, and remember in Monopolistic Competition the goods that are sold are differentiated products).
Or is the consumer's knowledge of maintenance/repair expenses generally lacking compared to their knowledge of initial expenses?
Are there other expenses, such as maintenance/repair expenses that affect demand elasticity as well? Assuming a good is a luxury, and is sold by a firm that operates in a market that is in monopolistic competition, theoretically, if a consumer has information about maintenance and repair expenses, and has to choose between 2 goods, both have the same initial expense. However, Good A has an average maintenance expense of 10$/year, while good B has an average maintenance expense of 15$/year, wouldn't the consumer's demand for good A be more inelastic compared to their demand for good B? (Assuming this market operates in isolation, and remember in Monopolistic Competition the goods that are sold are differentiated products).
Or is the consumer's knowledge of maintenance/repair expenses generally lacking compared to their knowledge of initial expenses?