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Elastic Vs Inelastic Essay

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2. Is the product a luxury or necessity?- If the product is a luxury it makes that product more elastic. If a good is a luxury good it is easier for people to continue to live their lives without it if the price of that item would increase. If a product is a necessity it makes the product more less elastic or inelastic. When a product is necessary for people to function from day to day they will be less likely to be impacted by the price change. Is there many substitutes for the product?- When there are many substitutes for a specific product it makes that product more elastic. Having many other options for a product makes it easier to adjust if there is a price change for that item. Many similar products makes it easy to adjust if a …show more content…

If there is no maximum limit in a person’s budget for the product price increase won’t affect that person buying the product and makes the product inelastic. How much time is available to make the purchase?- If there is a lot of time to make the purchase it gives more opportunities to find better prices for the product. This makes the product more elastic. When there is not a lot of time to purchase a product this makes the product inelastic. Having less time to get a product that is needed makes the price less of a factor in the purchase. 3. Eggs-This product would be inelastic. Most people use eggs regularly in their diet and would not change their use of eggs if the price would change. Eggs are a must have in most households so people will still be inclined to buy them if the price would go up Concert Tickets- Concert tickets would be elastic. People don’t need concert tickets to continue to live their lives, concert tickets would be considered a luxury. If the price would increase drastically it may cause many people to not buy them, if the price would go down there would be many people that would want to buy

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