Answer to Question #219912 in Microeconomics for conniey

Question

the following are example of inelastic goods it is cigarette and gas so can you please help me by indicating and explaning the type of elasticity that the these commodities represent

Answer 1

Because smoking is such a difficult habit to break, demand for cigarettes is highly inelastic, which means that big price changes generate relatively minor changes in the amount required. Because demand is inelastic to price changes, only significant price increases (decreases) will reduce (stretch) demand.

Gas is a very inelastic product, which means that price changes have minimal effect on demand. Price elasticity is a measure of how sensitive demand is to price changes. Almost all price elasticities are negative, implying that a rise in price leads to a decrease in demand and vice versa.