Timico, I agree that the price of purchasing a cashier’s check can be extreme for most budgets. This type of payment is also good when there is a large amount of money that need to transfer from one institution to another one. Cashier checks are guaranteed money and it is drawn from the purchaser’s bank account. This type of checks is more secure for the recipient and is one of the reasons it is requested. Cashier checks are not a product that has a wide variety of substitutes available. When the price of cashier’s checks increase, consumers will be less sensitive react because of the narrow alternatives (Thomas & Maurice, 2010). Goods and services that have scarce or no substitutes have a low price elasticity of demand (Thomas & Maurice, 2010). Cashier checks is a product with a small price elasticity of demand.
A consumer’s income and budget will determine how often a cashier’s check is purchased because of how expense they can be. Purchasing one at a credit union is cheaper than $8.00 to $15.00 but of course, you will have to be a member of the bank. …show more content…
Many times the consumer will not know that there is a price increase unless it is a product that the consumer purchase all the time. If the price of cashier’s checks rises and the consumer is in need of it, they are going to go ahead and purchase it regardless of the price. In this situation, consumers are less reactive to the change in price (GORDON, GOLDFARB & YANG, 2013). Changes in the demand will occur when the price for a product or service increase or decrease. The quickness in which consumers react will change over time depending on the amount of time they have to adjust to the price increase (Thomas & Maurice,
A consumer’s income and budget will determine how often a cashier’s check is purchased because of how expense they can be. Purchasing one at a credit union is cheaper than $8.00 to $15.00 but of course, you will have to be a member of the bank. …show more content…
Many times the consumer will not know that there is a price increase unless it is a product that the consumer purchase all the time. If the price of cashier’s checks rises and the consumer is in need of it, they are going to go ahead and purchase it regardless of the price. In this situation, consumers are less reactive to the change in price (GORDON, GOLDFARB & YANG, 2013). Changes in the demand will occur when the price for a product or service increase or decrease. The quickness in which consumers react will change over time depending on the amount of time they have to adjust to the price increase (Thomas & Maurice,