Explore BrainMass

Explore BrainMass

    Elastic and Inelastic Demand

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Can you think of a product and/or service that would characterize elastic demand? Inelastic demand?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:41 pm ad1c9bdddf

    Solution Preview

    A product that might have elastic demand is MP3 players. These sorts of music players are not necessities and so if their price increases by even a small amount, there might be a big decrease in their demand. This is because people do not have to pay the higher price for such an item. They can easily live without this product. Thus the demand is very elastic. On the other hand, if price drops by a small amount, a lot of people might want to buy this product because they may perceive it as 'cheap'. The same holds true ...

    Solution Summary

    The solution gives examples of elastic and inelastic demand.