Price elastic or inelastic good

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1. Price Elastic or Inelastic Good

What is an example of a product (or group of products) which you buy or sell whose demand is price inelastic (or, if you prefer, price elastic). In your answer, be sure to state carefully what it means for demand to be "price inelastic" (or price elastic).

What is it about this product or these products that makes either you or buyers in general TEND to continue to purchase it (if you're thinking of a case of inelastic demand) or TEND to stop purchasing it (if you're thinking of a case of elastic demand) when the price rises?

Consumers are supposed to be more price elastic after a price increase as more and more time passes and they find ways to alter their spending habits. Is your reaction different after a longer time period to adjust, or does the time period matter in this case?

An important issue shaping consumers' decisions is always the availability of good substitutes for a product. How does that factor enter into your example?

Reference no: EM132471505

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