For example, the toothpaste has same function and target market but there is different brand. Therefore, toothpaste is essential and inelastic.
Thursday, 24 October Colgate Palmolive Colgate-Palmolive Company starts from a minor candle and manufacturer of soap. Summary Let's review elasticity in demand and supply When a consumer satisfied the toothpaste and the toothpaste meets their requirement, it will leads to an increase of demand.
They aiming for cost reduction across every category, thus a major agreement for preservatives used in household care and personal care products were awarded to a single supplier, delivering significant savings and leading to a unique research agreement.
Therefore, the company has to be careful because there has a few firms selling the similar toothpaste.
Amos web, An oligopolistic firm is a relatively large compared to the whole market so it has a considerable degree of the market control. In general, more income more demands of the product, so it can be considered as a normal good.
Colgate toothpaste has a greater number of close substitutes exists such as Crest, Aquafresh, SensodyneOral-B and so on. In this case, Colgate Palmolive is a long run industry since the company has over 6o manufacturing in the planet.