Question
Need help to response this person Option 1: A relatively inexpensive product that I purchase on a regular basis is eggs. If the price of
Need help to response this person
Option 1: A relatively inexpensive product that I purchase on a regular basis is eggs. If the price of eggs increased by 25%, I would still purchase them. Although, I would slightly restrict my use of eggs until their prices go back down. My response is considered to be mostly inelastic. Although I would cut back on my usage of eggs (elastic), I would still purchase them on a regular basis (inelastic). If my response was strictly elastic, I would stop buying eggs completely. Alternatively, if my response was strictly inelastic, I would purchase and use the same amount of eggs just like before the price change. A relatively expensive product that I purchase less frequently would be a new phone. If the price of a $1000 phone increased to $1,250, I would feel frustrated. I would debate whether to get the new phone or not. I might even consider getting a cheaper, less quality phone. If I am in desperate need of a phone, I would be forced to purchase a new one despite the price change. This response is mostly elastic because I wouldn't purchase a new phone unless I was desperate. When already expensive item's prices increase, it has a larger effect on the demand. Unfortunately, a lot of people are obligated to purchase crucial products like cars and phones, regardless of price changes.
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