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What Is Price Elasticity Of Demand In The Real World

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Price Elasticity of Demand and Supply: In the Real World
Samantha Howell
Salem International University Let me start this assignment by defining price elasticity of demand and supply. When the price of a product changes the product’s price elasticity of demand measures it. According to Brue, McConnell, Flynn, and Grant (2014), “Price elasticity of demand is a measure of the responsiveness of the quantity of a product demanded by consumers when the product price changes.” How easily and quickly producers can shift resources between alternative uses to alter production of a good is the degree of price elasticity of supply is dependent on. According to Brue, McConnell, Flynn, and Grant (2014), “Price elasticity of supply is a measure of …show more content…

According to 15.1 (2017), “The law of demand applies to health care as in other markets: as the price of health care increases, you demand less of it. But we must be careful. What matters is the price of health care to you.” This means that medical care is inelastic. As a person you need health care such as doctors’ appointments and possibly surgery. No matter how much it costs a person always needs medical care. According to 15.1 (2017), “If you are sick and require care, you will purchase health-care services at almost any price. Of course, your ability to purchase health care is ultimately limited by your income, but you are likely to trade off spending on many other products to purchase the medical care you …show more content…

(2017). Retrieved October 12, 2017, from https://saylordotorg.github.io/text_microeconomics-theory-through-applications/s19-01 supply-and-demand-in-health-ca.html
Brew, G. (2017, March 30). Is Gasoline Demand On The Rise? Retrieved October 12, 2017, from http://oilprice.com/Energy/Oil-Prices/Is-Gasoline-Demand-On-The-Rise.html
Brue, S. L., McConnell, C. R., Flynn, S. M., & Grant, R. R. (2014). Essentials of Economics (3rd ed.). New York, NY: McGraw-Hill/Irwin.
Gasoline Price Fluctuations. (2017). Retrieved October 13, 2017, from https://www.eia.gov/energyexplained/index.cfm?page=gasoline_fluctuations
Gasoline, Diesel and Crude Oil Prices. (2017). Retrieved October 13, 2017, from http://www.gaspricesexplained.com/#/?section=gasoline-diesel-and-crude-oil-prices
Hayes, A. (2017, April 20). Economics Basics: Elasticity. Retrieved October 12, 2017, from http://www.investopedia.com/university/economics/economics4.asp
USDA. (2017, September 20). Food Demand Analysis. Retrieved October 13, 2017, from https://www.ers.usda.gov/topics/food-choices-health/food-consumption-demand/food

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