Answer to Question #138861 in Microeconomics for Nana

Question

3 goods or products that we can identify as elastic and inelastic. Explain how you classify each as elastic good and inelastic good

Answer 1

Below are three examples of products which are both elastic and inelastic

· Gasoline- generally, gasoline is inelastic in demand mostly in short term. The substitute for gasoline offer less control and convenience. However, the demand for gasoline from a particular station may be elastic.

· College textbooks-traditional textbooks are inelastic in demand. It is mandatory for students to buy textbooks as instructed by the teacher regardless of the price. The new channel distribution of textbook has price elasticity to the publishers.

· Coffee- speciality coffee drinks are inelastic in demand. There are few substitute for coffee shops offering personalized drinks and experience to customers. Black coffee are available in most cases causing elasticity to the providers