Econ 1002

Reflection Assignment #2 (Elasticity of Demand)

Topic: Connect the concept of price elasticity of demand to a real world problem:

In this reflection you are to "connect" the concept of price elasticity of demand to a real-world problem. You are meant to pick a good/service and answer the following questions/discussion points.

1. What kind of elasticity does your good/service most likely have? Provide reasoning and theory for why you think that.

2. Based on your decision in question 1, what sort of strategy could you implement to improve revenue if you ran a company that sold your good/service?

3. Are there any factors that could change the elasticity type of your product? (ie. From elastic to inelastic). Be creative!