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givi [52]
3 years ago
13

i’m not giving as much points anymore cuss people are rude and i already wasted half of them for nothing Ill give you brainlist

and points i’m not in a joking mood to whoever gets it right i’ll give you 70 points ig and if your not gonna help or anything don’t comment it’s wasting my points-_-

History
1 answer:
Bad White [126]3 years ago
4 0

Answer:

you should be kind and feed the needy

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Choose three goods. Then predict whether they have elastic or inelastic demand at their current price. Next, determine their ela
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The price elasticity of a demand function measures the reaction of the quantity demanded by consumers after the price modification of a product. According to the law of demand, for normal goods, when the price of the product increases, the quantity demanded decreases, therefore there is an inverse relationship between price and quantity. Elasticity helps to assess the proportion of the modifications in the two variables.

<u>Let's analyse the following three goods:</u>

  1. Gasoline, is a good with an inelastic type of demand curve. When there is a change in the price of gasoline, the quantity demanded by consumers decreases in a lower proportion than the price increase. There are no easily available susbtitutes that consumers could purchase instead of gasoline to cover the same need. <em>The shape of this type of demand curve is represented by the first graph attached.</em>
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  3. Two vending machines located next to each other provide an example of a perfectly elastic demand curve. If the price of one of the two vending machines increases for the same product, its quantity demanded would be reduced to 0, as all consumers will switch to the other machine which is located only a few centimetres away. <em>The shape of this type of demand curve is represented by the third graph attached.</em>

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