Elasticity of demandthe demand for goods varies

Reference no: EM13862755

Elasticity of DemandThe demand for goods varies based on the change in the price of the goods. For example, if oatmeal costs less than cereal, consumers would buy more oatmeal for breakfast. However, the demand for inexpensive goods and services is not significantly affected by price fluctuations. Similarly, the demand for essential goods that have no substitute on the market, rarely changes with a change in price.

150 words.

Identify a product that you regularly consume, such as soft drinks or a particular snack food. Describe how your demand (consumption) will be impacted by a 25% price increase. Conversely, how will your demand (consumption) change if the price drops by 25%? Is your demand for this product elastic or inelastic? Explain why.

Reference no: EM13862755

Questions Cloud

Analyze the messages using the communication process : Analyze the messages using the communication process

Which is not explicitly stated in standard unqualified audit : Which of the following is not explicitly stated in the standard unqualified audit report? Which of the following is not a SysTrust Services principle as defined by the AICPA?

Abundance and factor intensity to sort countries and product : Suppose Canada has 100 workers and 160 units of capital whereas Mexico has 100 workers and 70 units of capital. Also suppose that each unit of product A requires 4 workers and 1 unit of capital to produce, whereas each unit of product B requires 5 un..

How would a university research team evaluate : How would a university research team evaluate one of your deeply-held beliefs?

Elasticity of demandthe demand for goods varies : Elasticity of DemandThe demand for goods varies based on the change in the price of the goods. For example, if oatmeal costs less than cereal, consumers would buy more oatmeal for breakfast. However, the demand for inexpensive goods and services is n..

Current account balance and capital account balance : Suppose a country has net exports of 40, transfer payments of 20, net investment income of -15, and a balance of payments surplus of 10. Find the country's current account balance and capital account balance.

How is dissociative disorder influenced by the legal system : How is Somatic Symptom influenced by the legal system and How is dissociative disorder influenced by the legal system

What are the roles of money : What are the roles of money? Explain in your own words what each of these roles mean. Which of the roles do the following items satisfy? a. A credit card b. A painting by Rembrandt c. A subway token

An increase in the price of product : An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is:

User Account

All Pages