Thank you for the opportunity to help you with your question!
Examples of price inelastic
goods are petrol and water. For these goods, a change in the price of the item
leads to a lower or no change in the demand of the item.
Examples of price
elastic goods are Shell petrol and bread of a given company. Petrol is general
price inelastic but in this case, if a given petrol station, like Shell increases
its price alone, then customer will shift to the other petrol stations. This is
the same case to the bread of a given company. Price elastic goods are those
whose demand changes proportionately or even higher than the change in the change
in their prices.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 19th, 2015
Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.