Elasticity is an important concept in economics and business management. An inelastic demand allows Show more Elasticity is an important concept in economics and business management. An inelastic demand allows firms to raise prices and make a higher profit whereas a highly elastic demand would cause the firm to lose money if they raised prices. Pick a single product or service and offer your opinion on these points: Is the demand for the good or service elastic or inelastic? Be sure to explain why you hold that belief. Is the good a normal good or an inferior good? Once again say why. For your subsequent posts expand the discussion by doing one or more of the following: Identify complementary or substitute goods that might alter someones belief that a demand is inelastic. (For example the demand for a mens razor blade holder is highly elastic; firms give them away. However once you have the holder most firms charge quite a bit for the blades making the combination of blade and holder less elastic.) Identify how demand for the good would change if there were a change in the economy (e.g. if we were in a recession). Show less
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