Supply and demand give us a basic framework for thinking of how consumers and producers interact in the market. We saw how shifts in supply and demand can change prices and shift equilibrium output. This week we will start thinking about how sensitive consumers are to price changes. Economists have recognized that there are some goods (like gasoline, electricity, and insulin) that people are willing to tolerate a price increase without greatly changing the amount they buy. We call these goods inelastic goods. But there are other goods that people are more sensitive to price changes (like coffee, television sets, restaurant meals). We call these goods elastic goods. Watch this video by Professor Tabarrok and then respond to the following. One example of an inelastic good that often gets cited are concert tickets. If you really want to see your favorite artist perform, you know a cover band isn't a close substitute. This means that even as ticket prices go up, the willingness to pay is slow to change. Give an example of one time in your life where you were willing to buy something at any price. Was it worth it