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For each of the following products/services state whether the elasticity of demand would be:
a) elastic b) inelastic or c) it depends
Include a brief explanation, not longer than a paragraph, for your choice for each product.
Electricity
I believe that Electricity is Inelastic because weather the price changes the demand for Electricity will be strong as we all need it. We can’t live without it and if the price goes up people will still be using Electricity but they will be wise on how much they use.
Milk
I believe that it depends because people will buy it because of the benefits it provides to a person and won’t consider the price, but if the price starts to increase a lot …show more content…
The reason coffee has a extremely high demand is because of caffeine which makes the person addicted to it. If the price increases for coffee, then people won’t buy it as often and will change to another drink that contains caffeine.
diamond rings
I think that Diamond Rings can be elastic and inelastic because the prices always vary on diamond rings. When the price increases people think twice if it’s worth buying a ring and if it will still have a decent value within a couple years. Also I think that it could be elastic because people will buy it if it is expensive or not, because buying a ring as an engagement gift is a popular trend and people buy it cheap or expensive. plastic surgery
I believe that Plastic Surgery is elastic because people can live without it. Most people get plastic surgery because of appearance. The price for plastic surgery ranges in thousands and thousands and the demand for it is really high because a lot of people feel that they do not look good in appearance and need a
For each of the following products/services state whether the elasticity of demand would be:
a) elastic b) inelastic or c) it depends
Include a brief explanation, not longer than a paragraph, for your choice for each product.
Electricity
I believe that Electricity is Inelastic because weather the price changes the demand for Electricity will be strong as we all need it. We can’t live without it and if the price goes up people will still be using Electricity but they will be wise on how much they use.
Milk
I believe that it depends because people will buy it because of the benefits it provides to a person and won’t consider the price, but if the price starts to increase a lot …show more content…
The reason coffee has a extremely high demand is because of caffeine which makes the person addicted to it. If the price increases for coffee, then people won’t buy it as often and will change to another drink that contains caffeine.
diamond rings
I think that Diamond Rings can be elastic and inelastic because the prices always vary on diamond rings. When the price increases people think twice if it’s worth buying a ring and if it will still have a decent value within a couple years. Also I think that it could be elastic because people will buy it if it is expensive or not, because buying a ring as an engagement gift is a popular trend and people buy it cheap or expensive. plastic surgery
I believe that Plastic Surgery is elastic because people can live without it. Most people get plastic surgery because of appearance. The price for plastic surgery ranges in thousands and thousands and the demand for it is really high because a lot of people feel that they do not look good in appearance and need a