Elastic Demand Paper

Dropbox Assignment #2 An elastic demand is a demand that if the price changes the quantity that is demanded changes quite a bit, and an inelastic demand is no matter the price there will still be a demand for it (Economics, 2017). Generally, an elastic demand is a type of good that is more of a want rather a need, and an inelastic demand would be something that would be along the lines of a necessity. To figure out the elasticity a person would use the equation: (% change in quantity/% change in price). If the elasticity is greater than one or equal to one then it is elastic, and if it is less than one then it is considered inelastic (Economics, 2017). This paper will examine the inelastic demand of gasoline, the elastic demand of clothing, and the purchases that I make in my life that are most elastic and inelastic. Gasoline would be considered a need and not a product that is just a want, this is what makes it inelastic. Regardless, the price of gasoline and the quantity demanded is always about the same (Gasoline, 2017). Usually when there is a price increase in gasoline it is to bring supply and demand into balance (Gasoline, 2017). One of the main reasons people are willing to pay more for gasoline is because there are not substitutes for gasoline. A very small
I prefer to purchase more expensive better quality jeans and shoes but other than that I prefer to get the rest of my clothing at a reasonable price and I have many alternatives to choose from. Another elastic demand in my life would be food. When I am grocery shopping, I will buy some food that is Great Value because it is a cheaper alternative and the taste and quality is very similar to the name brand version. Buying a car would also be an elastic demand there are endless amounts of cars to choose from to buy and I like to be aware of the similar cars and their prices to see which one is the best for the