Focuses on decisions that do not involve large-scale factors such as government or economic factors that contribute to the economy. This is a bottom-up approach focusing on supplier costs and how demand and therefore sales price are affected by availability. Macroeconomic concepts help understand the factors that influence changes. Macroeconomics is the study of the economy as a whole and how larger forces affect the selling price of an item (Colander, 2013). It does not focus on individual decisions, but rather on broad factors such as inflation, unemployment, business cycles and growth. This is a top-down approach. In the scenario, the city capped the price of homes. This affects demand when there is a shift in population needs. How Price Elasticity of Demand Affects a Consumer's Purchasing and Pricing Strategy Price elasticity of demand can be calculated by dividing the percentage change in quantity demanded by the percentage change in price. A larger number for price elasticity of demand means that quantity demanded is more responsive to price (Colander, 2013). This information tells us how a quantity responds to a change in price. In the scenario, we can see that by increasing the price, the quantity demanded changes