From the following, which item would have elastic demand?
A. Desk
B. Exercise book
C. Correctional fluid
D. Biros
From the given options, the item that would have elastic demand is C. Correctional fluid.
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I apologize for the error in my previous response. I misspoke.
From the options provided, the item that would have elastic demand is D. Biros. Biros are commonly used and easily substitutable, meaning consumers can easily switch to a different brand or type of pen. This makes the demand for biros more sensitive to changes in price, resulting in elastic demand.
To determine which item would have elastic demand, we need to consider the concept of price elasticity of demand. Elastic demand refers to a situation where a change in price leads to a proportionately larger change in quantity demanded.
To analyze the elasticity of demand, we need to consider factors like the availability of substitutes, the necessity of the item, and the percentage of income spent on the item.
Let's examine the given items to determine which one is most likely to have elastic demand:
A. Desk: Desks are typically considered durable goods, and the demand for them is not highly responsive to price changes. The demand for desks is more likely to be inelastic.
B. Exercise book: Exercise books are a common school supply and are often considered essential for students. However, they also have readily available substitutes like notebooks or loose-leaf paper. If the price of exercise books were to increase, consumers might be more willing to switch to substitutes. Therefore, exercise books are more likely to have elastic demand.
C. Correctional fluid: Correctional fluid, commonly known as white-out or correction tape, is used to correct mistakes when writing. While it is a necessary item for some, there are substitutes available such as erasers or digital editing tools. If the price of correctional fluid were to rise significantly, consumers may opt for cheaper alternatives. Hence, correctional fluid is more likely to have elastic demand.
D. Biros: Biros, also known as ballpoint pens, are everyday writing instruments with a wide range of prices available. However, they are considered essential and do not have as many substitutes compared to exercise books or correctional fluid. Consequently, ballpoint pens tend to have inelastic demand.
Based on this analysis, the item with elastic demand is likely to be B. Exercise book, as it has readily available substitutes and consumers can easily switch to alternative options if the price changes significantly.