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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can the Type of Good/Service be an Influence to Price Elasticity of Demand

Author: eric_galvao



Answer:

-For Essential Goods, it is Price Inelastic. Consumers will still need to Buy even if Price goes Up. Non-Essential Goods is the Opposite [Elastic] -Goods that are Habit-Forming [Tabaco, Alcohol] are Demand Price Inelastic -Goods that can not be Postponed are Demand Price Inelastic -Goods with Several Uses, like Water, are Price Inelastic.


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