Price elasticity and IN-ELASTICITY
Discuss:
- The differences between price elasticity and inelasticity.
- Why certain products (or services) are price elastic or inelastic.
- The circumstances that can make a product (or service) that is price elastic become inelastic.
Choose a product that you use (except gasoline).
Discuss the reason(s) that it’s price elastic or inelastic.
Answer Preview
Price elasticity is the responsiveness of the quantity demanded of a good or service as a result of a change in price of that particular good or service. When an increase in price of a good or service results to a significant fall in the quantity demanded of that good or service, then the price of that good can be described as elastic. Price inelasticity occurs where a change in…
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