Identify 2 Products whose demand is price elastic.

Economics
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Identify 2 Products whose demand is price elastic and inelastic. 

 

Oct 19th, 2015

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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.  


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Oct 19th, 2015

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Oct 19th, 2015
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