Critique responses to prompt. Point out points that are not correct or controversial.

Answer both response separately

70-100 words each

Prompt:

Name a relatively inexpensive product that you purchase on a regular basis. If the price of that product increased by 25%, how would you react? Why? Is your response considered to be elastic or inelastic? Explain. Name a relatively expensive product that you purchase less frequently. If the price of that product increased by 25%, how would you react? Why? Is your response considered to be elastic or inelastic? Explain.

Response:

A relatively inexpensive product that I purchase on a regular basis would be energy drinks. Whether it's before a workout or going to school, energy drinks give me a good kick and get my day going. They cost around an average of 2-3 dollars depending on the brand. If the price of the energy drink was $3.00, and it increased by 25%, it would end up being $3.75. While it is only an increase of 75 cents, the total being closer to 4 dollars instead of 3 definitely makes a difference for me. However, due to my reliance on energy drinks, I would say that this would not stop me from buying them. This makes my response inelastic, as the price change did not change y demand for the good. A relatively expensive product that I purchase less frequently would be basketball shoes. On average a new pair of basketball shoes cost around $120. A 25% increase in price would mean they would end up costing $150. This would make me purchase basketball shoes less and also try to find ones on sale, meaning my response, in this case, would be elastic. The change in price for the product affected my demand.

Prompt:

Name a relatively inexpensive product that you purchase on a regular basis. If the price of that product increased by 25%, how would you react? Why? Is your response considered to be elastic or inelastic? Explain. Name a relatively expensive product that you purchase less frequently. If the price of that product increased by 25%, how would you react? Why? Is your response considered to be elastic or inelastic? Explain.

Response:

According to the Lumen Learning textbook, elastic refers to when the "computed elasticity is greater than 1, indicating a high responsiveness to changes in price" (Lumen Learning). As for inelastic, that is when the "computed elasticities that are less than 1 indicate low responsiveness" (Lumen Learning). A relatively inexpensive product that I purchase on a regular basis would have to be Starbucks coffee. If the price of this product increased by 25%, I would react by not frequently purchasing Starbucks coffee. At most, I will go 1 to 2 times a week instead of 3 times a week. This type of responsiveness can be considered to be inelastic because even though the price of this product increased, the demand did not decrease by a significant percentage. On the other hand, a relatively expensive product that I would purchase less frequently would be Nike shoes. If this product increased by 25%, I would react by not purchasing shoes from Nike. This type of responsiveness can be considered to be elastic because, since the price increases on a product that is already expensive, the demand for this product will literally plunge to the floor. Even though in California everything is super expensive, if luxury companies such as Gucci or even vehicles like Porches were to increase their price by 25%, the demand for their products would decrease.