4.3 Notes

United States Government: Democracy in Action, Student Edition

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1. A. Can the purchase be delayed If the price of a product goes up, you have the option to buy it later, making the product elastic B. Are adequate substitutes available If the product’s price increases, is there a substitute available for purchase that is similar C. Does the purchase use a large portion of income if it takes up a large portion of your income or not 2. The demand for insulin is inelastic because regardless of how much the price of it
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Unformatted text preview: increases, people with diabetes will still need it to survive and will end up paying the price for it, whether it increases $20-$50. When the price of insulin changes, there is little or no variance in the demand for it 3. Plasma TV, Laptops, and are some products with high elasticity. They are greatly affected by taxes enforced by the government causing total revenue of these products to decrease and affect the market greatly....
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This document was uploaded on 02/27/2012.

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