Writing 3_Week 3 - or activities to go, if coffee is too...

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Writing Assessment 3 Week 3 To determine if a good or service have a demand elastic or inelastic we have to analyze the respond to prices changes. Examples of elastic demand of goods or services we have: entertainment, coffee, vacation travel, premium ice cream, butter, coca cola, compact disc brand, and cable, internet or cell phone provider. Those are categorized as elastic because if we increase prices, demand will decrease since consumers will look for a substitute of those products or services to have better prices. We are always looking for the cheaper shows
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Unformatted text preview: or activities to go, if coffee is too expensive, people decides to drink tea, if margarine is cheaper than butter, people will consume more of margarine, and so on. Examples of inelastic products or services we have: soap, milk, gasoline, salt, oil, electricity, water, urban transportation, or healthcare. Those are categorized as inelastic because no matter the prices, consumer will always pay for those products or services, means that the demand remains the same....
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This note was uploaded on 02/28/2012 for the course ECON EC311 taught by Professor Zahid during the Spring '12 term at ITT Tech San Dimas.

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