read or listen to the following articles:

https://freakonomics.com/podcast/why-uber-is-an-economists-dream/

https://www.npr.org/sections/health-shots/2018/03/05/589469361/miracle-of-hemophilia-drugs-comes-at-a-steep-price

Price Elasticity is a topic that looks very difficult but I guarantee you all know it. It's a story easy to pull from my own life.

I like fruit. I prefer grapes but if I'm in Nome, Alaska, in January and the ice-road truckers are late, the remaining grapes in the freezer are relatively scarce. Remember though, grapes have a shelf life so the greedy grocer can't peg them at $10/lb because he risks not selling any of them. But he could raise the price to $3.50/lb and I grudgingly pay. In fact, he may charge me up $5/lb before I look to substitute for the cheaper and more plentiful red apples. (More on willingness to pay to come.)But look at this crazyfruit obsession. I have an INELASTIC demand for grapes. I have few substitutes and a very real demand coupled with a willingness to pay.

How about the case of those needing expensive medical treatment? Is the paucity of substitutes analogous? How about Uber? At what point does walking in the rain become worth the cost of skipping the surge pricing?

Give an example of another situation where there is a price inelasticity (few substitutes) of demand or a price elastic (many substitutes) elasticity of demand.

If you are the producer/seller/marketer of the given product, how does this influence your price strategy?