Tuesday, September 15, 2009
Elastic and Inelastic products
I think that a perfect example for an elastic demand product is a washer machine. A washer machine is something you really need but that lasts for a long time, you don't have to purchase it frequently. If a better one comes out and it's too expensive you can wait until the prices go down a little and then get a new one. Gas on the other hand is a perfect example for an inelastic demand product, is something you have to buy no matter what -unless you are close to the metro, which will not be the case on my example. If the prices go up, as much as it bother us we still have to fill up the tank to go to school or to class.
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I like how mention gas as being inelastic, and this is true. And since gas is a product category and not a brand, I guess any company offering the product can claim inelastic demand as long as they make sure they are within competing price range in the market. Good example!
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ReplyDeletecan we say that washing mashines are inelastic since they are neccessity??
ReplyDeletecan we say that a washing machine is inelastic since it is a neccessity.
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