Economics - Elastic vs. Inelastic Help?
The demand for an addictive good like cigarettes is likely to be _________________, while the demand for specific brands of cigarettes is more likely to be _________________.
relatively inelastic; perfectly inelastic
perfectly inelastic; relatively inelastic
relatively elastic; relatively inelastic
relatively inelastic; relatively elastic
- 1 decade agoFavorite Answer
The answer is the 4th one. Nicotine is addictive and there is no substitute so demand is relatively inelastic. A specific brand may be preferable, but the nicotine can be found in other brands making demand for that product relatively elastic.
Read your chapters and you won't have to rely on Yahoo Answers to pass your tests and complete your homework.Source(s): Business Degree
- thomas pLv 71 decade ago
I agree with the answer of "Dude." You might enjoy econ if you were to become absorbed in the topic. It is really a study in human behavior. Think about the gasoline pump prices and apply the principles set forth in your textbook. This is a ninth grade issue. Yet, you will be a person who blames Exxon for the price of gasoline if you do not have a basic background in economics. The people who are into politics often overlook supply and demand as more important than who is mayor, governor, senator, or president. So, the anger you see on boards and daily conversations is grounded in failure understand econ 101. Good luck.
- 4 years ago
It explains the relationship of demand to a change in price. Things are are price inealistic have less of a change in demand in response to a change in price. A good example would be gas, people don't generally change their demand as prices go up. Items with generally more elasticity of demand would likely be discretionary consumer items, like a vacation, etc. It's been 20 years since my last economics class where I covered things in such minute detail so I will gladly defer to others.