Inelastic Vs Nike Tennis Shoes Case Study

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Elasticity provides that the price of a product is sensitive to the change in price. Therefore, if the price of a product increases by 1%, the quantity will decrease by more than 1%. However, an inelastic product is not sensitive to price changes, and, therefore, if the price of a product increases by 1%, the quantity will decrease by less than 1%. Comparing the two products, gasoline and Nike tennis shoes, this writer has determined that gasoline is inelastic and Nike tennis shoes are elastic. An elastic product can easily be replaced by another product, and, therefore, the decision to purchase Nike tennis shoes could be changed to purchasing Adidas tennis shoes. Additionally, if the price increases for an elastic product, a decrease

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