ELASTICITY OF DEMANDBABY DIAPERS AND RETIREMENT VILLAGES

Other things equal, an increase (decrease) in the number of buyers for a product or service will increase (decrease) demand.However, the total impact on prices, or the relative change in the price, depends upon theelasticity of demand for the product.Baby diapers and retirement villages are two products designed for different population groups. The U.S. Census Bureau Web site, provides population forecasts illustrating the distribution of population by age and gender for all countries for multiple time periods.Review the population projectionsfor a country or region (i.e., China, United States, Less Developed CountriesLCD's, etc.) of your choice.

Copy and paste this URL into your browser.

https://www.census.gov/data-tools/demo/idb/#/country?YR_ANIM=2021

or

Country Population Pyramid

To view the Population cohorts by country, gender and age, under'Select by Country/Areas'use the Pull down menu and select a country of your choice.The rest should be self-explanatory depending upon the country and years you select.This is the type of data used by demographers to construct population pyramids (diamonds?).

Do not choose (USA, RUSSIA, South Africa, Argentina)

Answer these questions:

1. For your chosen country, what is the approximateabsoluteandpercentageincrease (or decrease) in demand for baby diapers between 2000 and 2050?Briefly explain how you arrived at this figure.

2. For retirement villages what is the approximateabsoluteandpercentageincrease (or decrease) in demand between 2000 and 2050?Briefly explain how you arrived at this figure.

3. For the country you selected, under what conditions would the demand forbaby diapers be elasticor inelastic?Forretirement villages elastic or inelastic? Briefly explain.

4. How does theelasticity of demandimpact what prices baby diaper producers could charge? what prices the owners of retirement villages could charge?To answer this question identify some of the determinants of demand elasticity (i.e., # of close substitutes, time period under observation, etc.)

I hope you select at least a BRIC country--by the way who are the BRIC countries and why are they similar.

Power Points for Elasticity:

/content/enforced/325836-ECO-210-75016.202170/ch003_9e (Elasticity).pptx

/content/enforced/325836-ECO-210-75016.202170/Chap_03_1.pptx

Please review this PowerPoint information also before you answer them above