Elasticity
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For each of the following goods, indicate whether you expect demand to be inelastic or elastic, and explain why. What would cause the elasticity to change in the future?
(a) Opera:
(b) Foreign travel:
(c) Local telephone service:
(d) DVD rentals:
(e) Eggs
(f) Iphone
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(a) Opera: The demand for Opera is going to be elastic. This is because this is not e necessity. People do not need to go see the Opera if they do not have to. If the ticket prices are too high, then they will not go. However, if the prices are low, then people may go. Elasticity could change in the future if Opera becomes more popular and people think of it as "Cable".
(b) Foreign Travel: This depends on the situation. However, people mostly do foreign travel for work related tasks. If it is work related, ...
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