1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elanso [62]
3 years ago
10

Choose three goods. Then predict whether they have elastic or inelastic demand at their current price. Next, determine their ela

sticity by creating a demand schedule and curve for each one

History
1 answer:
gladu [14]3 years ago
7 0

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>
  2. Cola, is a product with an elastic demand curve. When the price of a certain type/brand of cola drink increases its price, the quantity demanded of that product decreases in a larger proportion than the price increases. Consumers can easily switch and buy from a different cola brand or select a different type of soda drink to satisfy the same need. <em>The shape of this type of demand curve is represented by the second graph attached.</em>
  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>

You might be interested in
Plz help me i need help weth these
Nookie1986 [14]
I think the answer is a

3 0
3 years ago
Read 2 more answers
Exit what city did edward r. murrow report from during world war ii? user: on august 6, 1945 the united states dropped the atomi
sveticcg [70]
The answer is Hiroshima,Japan
8 0
3 years ago
Studies from the Washington Department of Natural Resources, showed that the Puget Sound area alone has lost nearly over a third
Aleonysh [2.5K]

Answer:

the answer is 1983

Explanation:

5 0
3 years ago
Describe the United States' role in carving out spheres of influence in China.
Reptile [31]
C. The United States did not take territory
7 0
3 years ago
Read 2 more answers
How did franklin roosevelt handle the problem of the great depression?
sleet_krkn [62]
Involving us in world war 2
8 0
3 years ago
Other questions:
  • What is they answer??
    11·2 answers
  • Which of the following were true of the Jamestown colony?
    9·1 answer
  • Why did a Cold War exist?
    15·1 answer
  • What was the purpose of the berlin conference
    6·1 answer
  • What is a possible cause for a decrease in ecosystem productivity?
    7·2 answers
  • “ individuals, cultures, societies, and the world changed through times of conflict and coorperation”. This statement exemplifie
    13·1 answer
  • The dawes plan 1924 showed americas
    14·1 answer
  • What are the origins of Thanksgiving?
    15·1 answer
  • Hurry! Which one is it ?
    15·1 answer
  • How could a news story be unfair?
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!