ECONOMICS
ELASTICITY OF DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Android phone
|
|
|
Tim Hortons Coffee
|
|
|
cars
|
|
|
Vacation to Hawaii
|
Detailed explanation-1: -The most common products that are inelastic would be food, prescription drugs, and tobacco products. Another product that could be considered close to perfectly inelastic would be gas.
Detailed explanation-2: -An inelastic demand is one in which the change in quantity demanded due to a change in price is small.
Detailed explanation-3: -Inelastic goods are often described as necessities. A shift in price does not drastically impact consumer demand or the overall supply of the good because it is not something people are able or willing to go without. Examples of inelastic goods would be water, gasoline, housing, and food.
Detailed explanation-4: -Petrol – petrol has few alternatives because people with a car need to buy petrol. For many driving is a necessity. Salt. A good produced by a monopoly. Tap water. Diamonds. Peak rail tickets. Cigarettes. Apple iPhones, iPads. 04-May-2019