Is price change in insulin inelastic or price change in Pepsi inelastic
The price change in insulin is likely to be inelastic, as it is a necessary and life-saving medication for individuals with diabetes. People who need insulin are often willing to pay a higher price for it, regardless of the increase in cost.
On the other hand, the price change in Pepsi is likely to be elastic, as it is a non-essential and discretionary item. Consumers have many alternative options to choose from when it comes to beverages, so they are more likely to be sensitive to changes in the price of Pepsi and may switch to a different brand or product if the price increases.