Economnics Disucussion 2

Economics
Tutor: None Selected Time limit: 1 Day

Identify two (2) elastic and two (2) inelastic goods that you have purchased in the last month and explain the main reason why you identified them as such.

Jan 18th, 2015

Identify two (2) elastic and two (2) inelastic goods that you have purchased in the last month and explain the main reason why you identified them as such.

  • First, I bought a container of salt.  It weighed 26 ounces and cost $.48.  The demand for this product is inelastic because it does not take up a significant portion of my budget.  If the price were to double, I could afford it just as easily as I can now and would surely not notice the difference.
  • Second, I bought a new air conditioner condenser for my car.  This did cost a lot of money.  However, demand for it would be inelastic even so.  This is because it is something that has no real substitutes.  Since I live in a place where it gets very hot in the summer, I need the air conditioner.  Goods with no substitutes typically have inelastic demand.

Jan 18th, 2015

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Jan 18th, 2015
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Jan 18th, 2015
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