Your assignment is to write a short (2 page, double-spaced, typed) essay identifying and describing two markets of your choosing; the first characterized by an elastic demand and the second one by an inelastic demand. Indicate why your choices have the relative elasticities they do.
Hint: Use the determinants of elasticity to sort why some products are elastic and others are inelastic.
- Market One: What are some of the goods you purchase in your life for which your demand is most elastic? Why?
- Market Two: What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?
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