# Choose a product you have purchased in the past month from a grocery or home improvement store.

# Describe how each of the 4 factors contributed to the elasticity of the good.
# Is the product considered elastic, inelastic, or unitary elastic?
# In a few sentences, what effect does the current supply and current demand have on this product?

I purchased 12 rolls of toilet paper. What did you buy?

Per capita real GDP in country L is three times as high as in country M.

The economic growth rate in country M is 8 percent while country L’s
economy grows at a rate of 5 percent.

To analyze the elasticity of a product, we need to consider four factors: availability of substitutes, proportion of income spent on the product, necessity of the product, and time. Let's consider a product like apples from a grocery store as an example.

1. Availability of substitutes: If there are many close substitutes for apples, such as other fruits like oranges or bananas, the product would be considered more elastic. Consumers have more options and can easily switch to a substitute if the price of apples increases.

2. Proportion of income spent: If apples represent a significant portion of a consumer's budget, the product would be considered more elastic. When the price of apples changes, it has a greater impact on the consumer's purchasing power and can lead to a higher responsiveness in demand.

3. Necessity: If apples are a necessity for consumers, such as if they are a staple food item, the product would be considered less elastic. Even if the price of apples increases, consumers may continue to buy them because they are essential.

4. Time: In the short term, the elasticity of apples may be relatively inelastic because it takes time for consumers to adjust their habits and find substitutes if the price changes. However, in the long run, consumers may have more time to find and adopt alternative fruits, making the product more elastic.

Based on these factors, the elasticity of apples can vary depending on the specific circumstances. If there are abundant substitutes, the proportion of income spent is low, apples are not a necessity, and consumers have sufficient time to adjust, then the product can be considered relatively elastic. However, if the opposite is true, it can be considered relatively inelastic or even unitary elastic.

The current supply and demand of apples can have various effects on the product. If the supply of apples decreases, for example due to weather conditions or crop failures, while the demand remains constant or increases, the price of apples can rise. This can lead to a decrease in the quantity of apples demanded, potentially making the product more elastic as consumers may switch to other fruits. Conversely, if the supply of apples increases, while the demand remains constant or decreases, the price of apples may fall, potentially increasing the quantity demanded and making the product less elastic. The effect of supply and demand on elasticity ultimately depends on the specific dynamics of the market.