Your assignment is to write a short (2-3 page, double-spaced, typed) essay identifying and describing two markets of your choosing; the first characterized by an elastic demand and the second one by an inelastic demand. Indicate why your choices have the relative elasticities they do.
Hint: Use the determinants of elasticity to sort why some products are elastic and others are inelastic.
- Market One: What are some of the goods you purchase in your life for which your demand is most elastic? Why?
- Market Two: What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?
Draw upon Chapter 19 for your analysis. This will be graded using the Dropbox rubric.
Hint: Use the determinants of elasticity to sort why your choices in Market One are elastic and why the choices in Market Two are inelastic.