Name at least 10 goods and services for which the demand would be elastic or inelastic.?

Question

Name at least 10 goods and services for which the demand would be elastic or inelastic. What determines the price elasticity or inelasticity of demand of a good or a service? Explain by referring to the list you have compiled.

Answer 1

The KEY here is to understand what elastic and inelastic demand mean.

Elastic means consumers are very sensitive to changes in price. So when the price goes up, we'll buy less of it.

By contrast, inelastic means that consumers aren't overly sensitive to price changes. So if the price goes up, we don't buy that much less of it. So demand remains more steady.

Answer 2

An inelastic good has a nearly constant demand despite an increase in price. Addictive goods such as tobacco, alcohol, gambling and Super Bowl tickets are typically inelastic, because the addicted consumer will buy them even at higher prices.

Another example of an inelastic good is Matzoh at Passover. The price can increase and Jewish people will still purchase it for Passover. Kosher foods during Passover would likewise be inelastic.

Elastic goods such as restaurant meals, movie tickets, and luxury items usually follow the law of demand and will see a drop in quantity demanded when prices rise.

Answer 3

She's right but remember: price changes quantity demanded and not demand.  Elasticity is the percentage change in quantity demanded to the percentage change in price.