Question

Jenna is looking to buy a new computer. When would the price elasticity of demand be most elastic for her computer? Order the situations from most elastic to most inelastic.

Answer 1

Answer:

It is convenient for Jenna to buy her computer when the price is more elastic and the Offer of the good is large, because the greater the supply of a good, the lower the price and with the elastic demand. It means that the price varies in proportion to the the demand and supply of the good would have the price of convenience that the computer should buy.

The order of Jenna's computer is as follows:

* Jenna's work computer broke down and she needs a new one or else she can't work.

It is inelastic in this regard because Jenna needs the computer immediately and will not expect a variation in market prices.

* Jenna uses her computer recreationally and wants to be able to listen to music with her friends in two days when they visit her.

The purchase of the computer can wait two days, since although you need it to spend time with your friends, it is not extremely necessary.

* Jenna's computer works fine, but she wants to buy a newer model.

The purchase of the computer can wait therefore the demand becomes more elastic