# economics

Identify three goods each for which your demand is (a) elastic or (b) inelastic. What accounts for the differences in elasticity?

Thank you for using the Jiskha Homework Help Forum. Let me help by explaining the difference between elastic and inelastic demand.

elastic demand means the demand changes when the price changes. For example, I want 10 but the price goes up so now I want only 5.

inelastic demand means the quantity demanded does not change much when the price changes. For example, I want 10 but the price goes way up. However, I still order 10.

Now you pick!

SraJMcGin - an interesting, but not completely correct, description of elasticity.

Elasticity of demand is the (percentage change in quantity demanded) divided by the (percentage change in price). That is:
E=((%dQ)/(%dP)). (Here, d means change)

E is always negative, but we usually express E in absolute value terms (i.e., as a positive number)

We say something is elastic when E is greater than one (absolute value) meaning that if price changes by x percent, consumption will change by more than x percent. Many food products (beef, chicken, bananas) are thought to have elastic demands.

Conversely, if the E is less than one, the elasticity is inelastic. Cigarettes and gasoline fall into this category.

1. 👍
2. 👎
3. 👁

## Similar Questions

1. ### economics

Suppose the price of widgets falls from \$7 to \$5 and consumption of widgets rises from 15 widgets a month to 25 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand

2. ### AP Physics - collisions?

Two steel balls collide and bounce apart in an isolated system. If the final kinetic energy is less than the initial kinetic energy, what of the following is true? a) Momentum is conserved in this elastic collision incorrect b)

3. ### Math

The demand equation for a product is: q=60/p + ln(65-p^3) A) Determine the point of elasticity of demand when p=4, and classify the demand as elastic, inelastic, or of unit elasticity at this price level. B) If the price is

4. ### Calc

Find the elasticity of demand​ (E) for the given demand function at the indicated values of p. Is the demand​ elastic, inelastic, or neither at the indicated​ values? q=410 - 0.2 p^2 a.​\$21 b.\$39

1. ### Microeconomics (need to see if i got these right.

31. If an increase in the price of a good leads to an increase in total revenue, then _____. (Points: 3) the supply curve must be price inelastic the demand curve must be price inelastic I CHOSE THIS ONE the supply curve is price

2. ### Economics are these correct

Are these correct? Thanks, Answer is next to number of question C 1. Which of the following is consistent with the law of supply? a. As the price of calculators rises, the supply of calculators increases, ceteris paribus. b. As

3. ### physic

A 0.500 kg sphere moving with a velocity (2.00 - 3.10 + 1.00) m/s strikes another sphere of mass 1.50 kg moving with a velocity (-1.00 + 2.00 - 3.30) m/s. (a) If the velocity of the 0.500 kg sphere after the collision is (-0.90 +

4. ### Microeconomics (full version)

Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was). a.

1. ### Math - Limits/Derivatives

If a price-demand equation is solved for p, then price is expressed as p = g(x) and x becomes the independent variable. In this case, it can be shown that the elasticity of demand is given by E(x) = - [g(x) / xg'(x)]. Use the

2. ### college

the more elastic the demand for the good labor produces, the less elastic the demand for labor. True or False When a monopolistically competitive firm is in long-run equilibrium, average total cost is at its minimum. True or False

3. ### 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

4. ### Microeconomics

Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was).