Discuss a good or service with an elastic demand. How would you behave if the good or service's price increased significantly? Discuss a good or service with an inelastic demand. What would you do if this good or service became much more expensive that it is now?
If your income increased substantially, what goods or services would you consume more of (normal and luxury goods)? What goods and services would you consume less of (inferior goods)?© BrainMass Inc. brainmass.com October 9, 2019, 9:48 pm ad1c9bdddf
Discuss a good or service with an elastic demand. How would you behave if the good or service's price increased significantly?
Luxury car is an example of a good with an elastic demand. If the price of the luxury car increased significantly, I will refrain from purchasing luxury cars. There are several substitutes for luxury cars. In other words goods with a lot of substitutes have high ...
This posting gives you an in-depth insight into elasticities of demand.