What would be considered elastic and inelastic for both demand and supply?

An elastic demand or elastic supply is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. An inelastic demand or inelastic supply is one in which elasticity is less than one, indicating low responsiveness to price changes.

Can a good be elastic and inelastic?

When a product is elastic, a change in price quickly results in a change in the quantity demanded. When a good is inelastic, there is little change in the quantity of demand even with the change of the good’s price. If the market price goes up, firms are likely to increase the number of goods they are willing to sell.

Is cereal elastic or inelastic supply?

The demand for cereal as a whole will be relatively inelastic. The reason for this is that cereals are relatively inexpensive. Demand for goods that do not take up a large proportion of a consumer’s budget is generally more inelastic than demand for goods that are more expensive.

Is Nike an elastic or inelastic?

The demand for Nike products is price inelastic because the increase in price have little to minor changes on the quantity demanded. If a large change in price is accompanied by a small amount of change in quantity demanded, the product is inelastic.

What are examples of elastic goods?

5 Examples of Elastic Goods

• Soft Drinks. Soft drinks aren’t a necessity, so a big increase in price would cause people to stop buying them or look for other brands.
• Cereal. Like soft drinks, cereal isn’t a necessity and there are plenty of different choices.
• Clothing.
• Electronics.
• Cars.

Which of the following is an example of a good with inelastic demand?

The most common goods with inelastic demand are utilities, prescription drugs, and tobacco products. In general, necessities and medical treatments tend to be inelastic, while luxury goods tend to be the most elastic. Another typical example is salt.

What goods are elastic?

Examples of elastic goods include luxury items and certain food and beverages. Inelastic goods, meanwhile, consist of items such as tobacco and prescription drugs. The elasticity of demand is calculated by dividing the percentage change in the quantity demanded by the percentage change in the other economic variable.

Are Jordans elastic?

Let’s see how well you do at determining if the good is elastic or inelastic. The price of black Nike Air Jordan shoes increases by 10\% and the quantity demanded decreases by 20\%. Are black Nike Air Jordan shoes elastic or inelastic? – Elastic.

Is Steak elastic or inelastic?

The price elasticity of demand for steak is said to be high (elastic). If the quantity of steak demanded was to only fall by 0.01\%, we can see this is a fairly insignificant fall in quantity in response to the 1\% increase in price. In this case the price elasticity of demand for steak is low (inelastic).

What is an example of inelastic supply?

Inelastic goods are often described as necessities. A shift in price does not drastically impact consumer demand or the overall supply of the good because it is not something people are able or willing to go without. Examples of inelastic goods would be water, gasoline, housing, and food.