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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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