When looking at the price elasticity of Tyson products, we must also look at the determinants of the price elasticity of demand. Tyson’s products, chicken, beef, pork and prepared foods, all have a close substitute; people can choose to eat foods other than what Tyson provides. All of Tyson’s products can be considered a necessity since people need to eat in order to live. The cost of these products only uses up a small amount of a consumer’s budget, which generally makes Tyson’s goods less elastic. We can look at the market in which these products are sold in different ways: by brand and by product. Glenn and Patrick noted that the narrower a market is, the demand becomes more elastic (Glenn & Patrick, 2017). The market is narrower if we look at it in terms of product versus in terms of brand. All these determinants help set the price for Tyson’s chicken, beef, pork, and prepared products. …show more content…
However, beef can be considered elastic in the sense that chicken is a close substitute. Consumers buy more chicken when beef prices are up. Chicken sales tend to go down when beef prices are down. According to Jayson Lusk, within the past couple years, beef prices have been rising (Lusk J. , 2015). As a result, chicken sales have gone up with the rising cost of beef. Jayson Lusk and Glynn Tonsor mentioned that when consumers’ income rises, consumers are more likely to chose steak over ground beef, and chicken breast over chicken wings (Lusk & Tonsor,