ASSIGNMENT | What are some of the goods you purchase in your life for which your demand is most elastic?

Your assignment is to write a short essay identifying and describing two markets of your choosing; the first characterized by an elastic demand and the second one by an inelastic demand. Indicate why your choices have the relative elasticities they do.
Hint: Use the determinants of elasticity to sort why some products are elastic and others are inelastic.
Market One: What are some of the goods you purchase in your life for which your demand is most elastic? Why?
Market Two: What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?
Draw upon Chapter 19 for your analysis. This will be graded using the Dropbox rubric.
Hint: Use the determinants of elasticity to sort why your choices in Market One are elastic and why the choices in Market Two are inelastic.

SAMPLE SOLUTION

The term elasticity is applied in economics to describe the rate at which the demand or supply of a product or service changes because of a change in price or income (Gans et al. 95). The elasticity of demand is concerned with changes in consumers’ demand resulting from a change in a good or service’s cost. There are several determinants of elasticity of demand. A key determinant is a change in the price of a commodity (Gans et al. 95). A second determinant is a consumer’s income. The highly paid group is considered…