What product is likely to have the most elastic demand?
Goods with close substitutes tend to have more elastic demand because it is easier for consumers to switch from such a good to others. In contrast, goods without close substitutes, such as a unique life-saving medicine, have a less elastic demand.
Which of the following is likely to have the most price inelastic demand?
|Term describes how much a change in price affects the quantity demanded.||Definition price elasticity of demand|
|Term which of the following items is likely to have the most inelastic demand?||Definition salt|
|Term if the price of water increases,||Definition the demand for water-saving shower heads will shift to the right|
What are examples of elastic and inelastic goods?
If demand for a good or service remains unchanged even when the price changes, demand is said to be inelastic. Examples of elastic goods include luxury items and certain food and beverages. Inelastic goods, meanwhile, consist of items such as tobacco and prescription drugs.
What are some examples of elastic goods?
Common elastic items include:
- Soft Drinks. Soft drinks aren’t a necessity, so a big increase in price would cause people to stop buying them or look for other brands.
- Cereal. Like soft drinks, cereal isn’t a necessity and there are plenty of different choices.
What is an example of a perfectly inelastic good?
Perfectly inelastic products would be something like air or water, and no one can really restrict that at this point in time. The most common products that are inelastic would be food, prescription drugs, and tobacco products. Another product that could be considered close to perfectly inelastic would be gas.
What makes supply more elastic?
Elasticity of supply is a measure of a producer’s ability to cope effectively with changes in demand. An increase in the number of suppliers makes the price of a product or service more elastic.