Post a New Question

Economics

posted by .

3. Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. In your explanation, be sure to include how the necessity of a good and the availability of substitutes affect the price elasticity of demand in each of these specific cases:

• Gasoline as a commodity

• Gasoline sold at a local gasoline station

• Hotel rooms for people planning a vacation

• Hotel rooms for people on business to meet an important client

  • Economics -

    - Elastic (don't have to buy, investor can easily find substitute)

    - Inelastic (no substitutes, you've just left home driving to work and your gas gauge is on E. you must buy it, your only choice is to not fill your tank completely).

    - Elastic (very)

    - Inelastic (e.g. absolutely need a 3-star or better hotel room in xxx city on xxx date)


    In general,

    "if you would purchase these products regardless of price...inelastic if yes, yes, elastic if no."

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. eco205

    I am to do research on an industry and answer the question is price elasticity of demand considered elastic or inelastic?
  2. Economics

    . A bumper crop of farm products causes: A. only a slight decline in the price of farm products because the demand for farm products is income inelastic. B. a large decline in the price of farm products because the demand for farm …
  3. Economics

    The question is, what is the for Math formula to show rather the demand of apples is Elastic, Inelastic, or Unitary Elastic Thank You Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops …
  4. microeconomics

    When agricultural production increases , the total amount paid for agricultural products tends to a. increase because demand is price elastic b. decrease becasue deamn is price elastic c. increase because demand is price inelastic …
  5. Microeconomics

    When agricultural production increases , the total amount paid for agricultural products tends to a. increase because demand is price elastic b. decrease becasue deamn is price elastic c. increase because demand is price inelastic …
  6. eco 205

    This is the assignment I chose Casino's Find at least two sources to help you answer the following questions about the industry you chose. o For what purpose were these sources created?
  7. ECONOMICS

    1)The tire shop sells 50 tires a day at $75. After they raise the price on tires to $85, they now sell 46 tires a day. What is the elasticity of tires at the tire shop?
  8. ECONOMICS

    1)The tire shop sells 50 tires a day at $75. After they raise the price on tires to $85, they now sell 46 tires a day. What is the elasticity of tires at the tire shop?
  9. economics

    3.Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. In your explanation, be sure to include how the necessity of a good and the availability of substitutes affect the price …
  10. multiple choice economics

    How does a person’s perception of a good as a necessity or a luxury affect his or her purchase of it?

More Similar Questions

Post a New Question