Why is the price elasticity of demand for products at a 24 hour convenience store likely to be lower at 2 a.m than 2 p.m?

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2026-05-06 16:15

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The price elasticity of demand for products at a 24-hour convenience store is likely to be lower at 2 a.m. than at 2 p.m. because, during the late-night hours, customers have fewer alternatives and are often in need of immediate items, leading to less sensitivity to price changes. At 2 p.m., consumers typically have more options and time to shop around, making them more price-sensitive. Additionally, the urgency of late-night purchases, such as snacks or essentials, can further reduce elasticity at that hour.

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