Question

Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic:1. Bottled water: ________2. Toothpaste: ________3. Crest toothpaste: ________4. Ketchup: ________5. Diamond bracelets: ________6. Microsoft's Windows operating system: ________

Answer 1

Answer:

1. Bottled water: elastic 2. Toothpaste: inelastic 3. Crest toothpaste: elastic 4. Ketchup: inelastic 5. Diamond bracelets: elastic 6. Microsoft's Windows operating system: inelastic

Explanation:

1.- Water in general should be inelastic because is vital. However,  since there is plenty of it, it is elastic.

2.-Toothpaste is inelastic because it doesn't have many substitutes.

3.- Crest tooth paste is elastic because it has many substitutes. (many other brands can replace it)

4.- Ketchup is inelastic. It doesn't have many substitutes.

5.- Diamonds bracelets are elastic because if their price rises the demand diminish because people don't have so much income to buy them.

6.- Microsoft Windows operating system is inelastic because it doesn't have many substitutes.