When we look at elastic or inelastic we need to understand the difference between both of them in economics point of view and understanding between both. According to the OCR elastic is “when the percentage change in quantity demanded is greater than the percentage change in price”. (158). Now, inelastic is defined as “when the percentage change in quantity demanded is less than the percentage change in price”. (158). We could observe the good of price inelastic and see the causes of the percent, which we eventually fall in demand or increase in prices. As the fall is approaching and winter around the corner, there's goods and services that need to be made before the prices rise even more, for example, oil, furnace services etc. Here are my
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Petrol prices are going up or down all the time I purchase gas last week and the gallon was about $1.95 gallon for regular gas, not comparing premium today I actually, went to fill my tank and it turns out the gas increase by 15 cents. I can’t actually, take a train or bus to work it will take me about two hours just heading to work. Basically, if the prices of petrol either go up or down it’s proven to be inelastic.
Another example, I would use is tap water, I actually pay for tap water every three months even I don’t enjoy the use of tap water or use it either for cooking or drinking its a necessity good for my household. Basically, I just paid my water paid from the summer months and was a huge difference on my bill higher than what I expected. No matter how much I don’t approve of the cost but it’s necessity good we all need.
Elastic Example:
Last week I went grocery shopping at BJ’s and bought Heinz Soups which my children enjoy eating especially, with cooler weather is approaching. Keeping in mind that Heinz soup is respected per the name of the brand, however, there other brands that people are willing to purchase due to less expensive
Petrol prices are going up or down all the time I purchase gas last week and the gallon was about $1.95 gallon for regular gas, not comparing premium today I actually, went to fill my tank and it turns out the gas increase by 15 cents. I can’t actually, take a train or bus to work it will take me about two hours just heading to work. Basically, if the prices of petrol either go up or down it’s proven to be inelastic.
Another example, I would use is tap water, I actually pay for tap water every three months even I don’t enjoy the use of tap water or use it either for cooking or drinking its a necessity good for my household. Basically, I just paid my water paid from the summer months and was a huge difference on my bill higher than what I expected. No matter how much I don’t approve of the cost but it’s necessity good we all need.
Elastic Example:
Last week I went grocery shopping at BJ’s and bought Heinz Soups which my children enjoy eating especially, with cooler weather is approaching. Keeping in mind that Heinz soup is respected per the name of the brand, however, there other brands that people are willing to purchase due to less expensive