Is drinking water elastic or inelastic?
Price elasticity estimates for water across the United States generally are observed as inelastic.
What is more elastic Beethoven recordings or classical music recordings in general?
Beethoven recordings have more elastic demand than classical music recordings in general. Beethoven recordings are a narrower market than classical music recordings, so it is easy to find close substitutes for them. Therefore, Beethoven recordings have more elastic demand.
Which good would you expect to have more elastic demand?
In general, the greater the necessity of the product, the less elastic, or more inelastic, the demand will be, because substitutes are limited. The more luxurious the product is, the more elastic demand will be.
Which is more elastic mansions or rental homes?
Mansions have more elastic demand than rental homes do because mansions are a luxury good, while rental homes are a necessity with no close substitutes. If the price of mansions were to rise, homeowners could substitute with smaller houses.
Is Coca Cola price elastic?
Coca Cola products are considered to have an elastic demand because quantity demanded for its products often change when prices change. If the price of Coke goes from $1.50 a bottle to $2.00 and the price of a 20 oz. … When demand is elastic as with Coca Cola products price changes affect total revenue.
Which is more elastic gasoline over the next 3 years or gasoline over the next 4 months?
3) Gasoline over the next 3 years has more elastic demand than gasoline over the next 4 months. Goods have a more elastic demand over longer time horizons. If the price of gasoline were to rise temporarily, consumers could not switch to alternatives without great expense or great inconvenience.
What is elastic and inelastic in economics?
An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. … In other words, quantity changes slower than price.
Why is price elasticity of demand unreliable?
The elasticity estimate might be unreliable because it is only the first month after the fare increase. As time goes by, people may switch to other means of transportation in response to the price increase. So the elasticity may be larger in the long run than it is in the short run.
What is elasticity of a product?
Elasticity is an economic concept used to measure the change in the aggregate quantity demanded of a good or service in relation to price movements of that good or service. A product is considered to be elastic if the quantity demand of the product changes more than proportionally when its price increases or decreases.