2. Substitution demand: As Nike manufacturing stumbles, Adidas sales race ahead!
3. Elastic demand: BMW ownership increases as average net worth rises!
4. Inelastic demand: Drivers ignite at the price they must pay for gasoline!
Inelastic demands are demands in which stay the same,
despite changes in pricing. An example of inelastic demand in the United States
would be gasoline. Most people need gasoline to run their cars to travel to and
from work, the store, schools, etc. Therefore, even if the price of gasoline
increases heavily (as it has been relatively recently), the demand for the gas
stays about the same. The practical aspect of this concept in every-day life
would be peoples “needs” and peoples “wants.” Generally, when a consumer has a
certain amount of money, he will buy whatever he/she needs before he/she buys
the things they merely want. The average consumer is forced to cut out all of
the economical “wants” before they consumer decides to stop buying gasoline. Inelastic
products are things like basic necessities such as bread, milk, etc. While
elastic products are items such as plasma screen televisions, expensive sports
cars, and things that aren’t necessary
for everyday life.
No comments:
Post a Comment