Description
Economic Implications Analysis Paper 2 to 3 pages. Must use scholarly references and use the reference short answers provided.
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Explanation & Answer
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Running head: ECONOMICS
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Economics
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Economics
A good that is perfectly inelastic
A good is perfectly inelastic when irrespective of the movement in price the consumer
will buy it. There are no substitutes for such a good thus the perfect inelasticity.
An example is insulin for patients with diabetes. No matter the price of insulin a diabetic has to
buy it since their life depend on it.
A good with inelastic demand
These are goods that demand does not change despite increase of fall of its price. An
example of this good is electricity. If the price of electricity goes up the demand wil...