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Elastic Vs. Inelastic Household Good

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Unit 3 Discussion Assignment Elastic vs Inelastic Household good Inelastic One example of an elastic good is the price of natural gas. Firstly, let’s look at the supply of natural gas. If we look at the energy market, with a growing trend moving away from coal and other high pollutants we can see there are few substitutes. As coal moved out of favor and towards natural gas there are substitutes that would influence the demand of gas overall. One of the substitutes is electricity, which, we could argue in the case of gas power stations in dependent on gas for its product. Supply of gas, is usually constant which also contributes to its inelasticity. Being few substitutes, and as an inelastic commodity, even in winter when its demand increases

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