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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