Goods with very elastic demand tend to be non

Goods with very elastic demand tend to be non -...

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Goods with very elastic demand tend to be non-necessary goods, or goods that cane be  easily substituted for by other goods. When the prices of these goods go up, consumers  will either decide they don't really need the goods, and won't buy any, or they will begin  to substitute away from the goods, buying more of the cheaper substitutes. One  possible example of a non-essential good might be candy. It is not an essential good,  and if the price were to double, demand would probably fall a good deal as consumers  decide they don't really need to eat candy, especially since it costs so much money. An  easily substituted good might be cola. If the price of one brand of cola increases,  demand will drop quickly as consumers decide to buy a competing brand, whose price  has stayed the same.  Goods with very inelastic demand tend to be goods with no easy substitutes, or 
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This note was uploaded on 12/13/2011 for the course ECO 1320 taught by Professor Staff during the Fall '11 term at Texas State.

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Goods with very elastic demand tend to be non -...

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