Agree or Disagree if products can become elastic.

I disagree

For inelastic demand, when price rises there is a small response (decrease) in quantity demanded. The percentage change is quantity demanded is less than the percentage change in price. For elastic demand, when price rises there is a large response (decrease) in quantity demanded. The percentage change is quantity demanded is greater than the percentage change in price.

Look at the following products, is demand for the following products elastic or inelastic?

a. Pimple medication b. Pencils c. Clothes d. Parasuco jeans e. Newspaper f. Toilet paper

In reference to toilet paper and clothes, demand for the latest fashions is more inelastic than demand for clothing in general. Shoppers are willing to pay higher prices for the latest fashions, but will buy many older fashions if the price is right.

Probably could argue that eventually the designer clothing becomes elastic, but not right away.

Hi duddy! wouldn't the jeans be inelastic? and for toilet paper, you said it was inelastic because since it's an essential need, people would care much about the price?
Okay so I just want to make sure that I understand the difference/meaning between the two, so elastic demand is basically when the consumer has a high concern of when the price changes of that particular product and inelastic would be the opposite, in other words, would care less if the price of that product changes.
And so back to the actual question which is, if products can eventually become elastic, how would I answer this exactly because not sure if they are talking about the demand/supply elasticity for those products, because those are two different things. Because there is price elasticity of demand, which measures the responsiveness of quantity demanded to a change in price. Whereas, price elasticity of supply measures the responsiveness of quantity supplied to a change in price. Just confused.

Exactly. A significantly large increase in price will not stop people from buying it.

Imagine a jewellery store cuts its prices on specialty watches by 20 percent, and finds that its quantity sold increases by 40 percent. To calculate the price elasticity of demand for its specialty watches, you'd do the following:

price elasticity of demand = Percentage change in quantity demanded divided by Percentage change in price.

For this example of a jewellery store’s specialty watches, elasticity of demand is 40 divided by 20 percent = 2.

Since the price elasticity of demand is greater than 1, this is elastic demand. Elasticity is used by businesses because it helps determine business pricing strategies to earn maximum total revenue – cut prices when demand is elastic and raise prices when demand is inelastic.

 Exactly. A significantly large increase in price will not stop people from buying it. [/quote]
How about the jeans?


[/quote] Imagine a jewellery store cuts its prices on specialty watches by 20 percent, and finds that its quantity sold increases by 40 percent. To calculate the price elasticity of demand for its specialty watches, you'd do the following: price elasticity of demand = Percentage change in quantity demanded divided by Percentage change in price. For this example of a jewellery store’s specialty watches, elasticity of demand is 40 divided by 20 percent = 2. Since the price elasticity of demand is greater than 1, this is elastic demand. Elasticity is used by businesses because it helps determine business pricing strategies to earn maximum total revenue – cut prices when demand is elastic and raise prices when demand is inelastic. [/quote]

Thank you duddy, I'm not on the calculation's yet, as of now, I'm trying to understand elasticity and inelasticity itself, and the question where I had said, which I could really use some help with,

[/quote] And so back to the actual question which is, if products can eventually become elastic, how would I answer this exactly because not sure if they are talking about the demand/supply elasticity for those products, because those are two different things. Because there is price elasticity of demand, which measures the responsiveness of quantity demanded to a change in price. Whereas, price elasticity of supply measures the responsiveness of quantity supplied to a change in price. Just confused. [/quote]

Don't be confused, you have all the information you need. First of all, do you believe at some point anything that's bought and sold becomes elastic in price? Elastic meaning a slight variation in price of a good/service makes slight change in demand


People need jeans to work haha, can you imagine a world without jeans!?

Ya that's good. And include the examples I provided earlier

That's great and will do that! thank you so much for the help/suggestions

I was also given another question that states "All businesses attempt to create inelastic demand for their products" What do you also think about this?
would that be sort of the same answer, in which it would depend on the type of product that attracts consumers to buy the product?