Show Now that you have a general idea of what elasticity is, let’s consider some of the factors that can help us predict whether demand for a product is likely to be elastic or inelastic. The following are important considerations:
With these considerations in mind, take a moment to see if you can figure out which of the following products have elastic demand and which have inelastic demand. It may be helpful to remember that when the buyer is insensitive to price, demand is inelastic.
Self Check: Explaining ElasticityAnswer the question(s) below to see how well you understand the topics covered in the previous section. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. You’ll have more success on the Self Check if you’ve completed the two Readings in this section. Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section. Which of the following is likely to have the most price inelastic of demand?The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products. In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be most elastic.
Which of the following would be most likely to have a price inelastic demand quizlet?Demand for products such as insulin, cancer drugs, and tobacco is usually inelastic. If your income goes down, you will probably purchase fewer goods and services.
Which product is likely to be price inelastic?Price inelasticity usually occurs with products that have fewer close substitutes, which means fewer options for customers. Such goods tend to be necessities that people can't do without and therefore their needs stay the same.
For which of the following the demand price is inelastic?Answer. Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
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