Purchase Solution

Describing two markets- Elastic and inelastic demand

Not what you're looking for?

Ask Custom Question

Write a short essay identifying and describing two markets of your choosing; the first characterized by an elastic demand and the second one by an inelastic demand.

Indicate why your choices have the relative elasticities they do.

Market One: What are some of the goods you purchase in your life for which your demand is most elastic? Why?

Market Two: What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?

Purchase this Solution
Solution Summary

The expert describes two markets. Elastics and inelastic demands are examined. The response addresses the query posted in 519 words with APA references.

Solution Preview

The response addresses the query posted in 519 words with APA references.
//On the basis of the elasticity of demand, the market can be categorized into two categories. The following discussion is about the forms of the market and elasticity, related to the respective market structure. In the discussion given below, two forms of the market have been discussed, namely, monopolistic competition and oligopoly market. The elasticity of both the forms of market has been explained. Furthermore, examples of both the markets have been discussed, and reasons for their elastic behavior have been explained.//
Price elasticity of the demand is the degree of responsiveness of the quantity demanded according to changes in the price (Little, 2012). Different markets have different values of price elasticity, depending on the products it deals in. Monopolistic competition ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Earning profit in a monopolistically competitive market

    reflects Answer:c. price rigidities in oligopolistic markets In the Kinked Demand curve model, the demand curve is ________ for prices increases and _______ for price decreases Answer:b. relatively elastic; relatively inelastic Thank you

  • Competitive Markets

    What happens to Popeye demand curve for spinach? 3. If the elasticity is greater then 1, is demand elastic or inelastic? If the elasticity equals 0, is demand perfectly elastic or perfectly inelastic? 5.

  • Price elasticity of demand

    320554 Describing the price elasticity of demand Describe the price elasticity of demand for a resource. Why is it important and what is it used for?

  • Elasticity of Demand: Inelastic, Elastic, and Unitary

    My recommendation to the CFO is that since the demand in Brazil and Germany is elastic, the CFO should price CPI products in such a way that its profits are maximized in those markets.

  • Use of excise taxes on goods that have inelastic demand

    But the government can collect more when it targets these markets. Ultimately, however, tax incidence is not solely dependent on the elasticity of the demand curve, but on both the demand and supply curves.

  • Inelastic Supply Curve and the Demand Curvfe

    237486 Inelastic Supply Curve and the Demand Curve Using graph(s) compare the impact on price, quantity and total revenue when: A) an elastic demand curve increases along a perfectly inelastic supply curve B) an inelastic demand curve increases along

  • Elastic and Inelastic Demand

    194684 Elastic and Inelastic Demand. Can you think of a product and/or service that would characterize elastic demand? Inelastic demand? A product that might have elastic demand is MP3 players.

  • How would the following changes in price affect revenue?

    Price falls and demand is inelastic. b. Price rises and demand is elastic. c. Price rises and supply is elastic. d. Price rises and supply is inelastic. e. Price rises and demand is inelastic. f. Price falls and demand is elastic. g.

  • Tax-Induced Price Increase and Elasticity

    In short run demand for goods or services is inelastic and it is elastic in long run. Consumers can change their habits in long run. That is why demand for air travel is inelastic in short run while it is elastic in the long run. 5.

View More Related Solutions