Explore BrainMass
Share

Explore BrainMass

    Elastic demand

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

    For each of the following pairs of goods, which good would you expect to have more elastic demand and why?

    a. Required textbooks or mystery novels
    b. Beethoven recordings or classical music recordings in general
    c. Subway rides during the next 6 months or subway rides during the next 5 years
    d. Root beer or water

    © BrainMass Inc. brainmass.com October 10, 2019, 3:33 am ad1c9bdddf
    https://brainmass.com/economics/new-classical/elastic-demand-424708

    Solution Preview

    For each of the following pairs of goods, which good would you expect to have more elastic demand and why?

    a. Required textbooks or mystery novels

    Novels have more elastic demand because they have close substitutes and are luxury in nature. Required text books are necessary and have no close substitutes. For instance, if the price of novels were to increase, readers would read other books. A student on the other hand must use required textbook.

    b. Beethoven recordings or classical music ...

    Solution Summary

    For each of the following pairs of goods, which good would you expect to have more elastic demand and why?

    a. Required textbooks or mystery novels
    b. Beethoven recordings or classical music recordings in general
    c. Subway rides during the next 6 months or subway rides during the next 5 years
    d. Root beer or water

    $2.19