Question

Discuss the impacts that technological change and time may have on the elasticity values of selects products or services identify a pair of products and or services ; use the the concept of elasticity and pertinent economic analysis and explain clearly and analytically

Answer 1

Answer :Impact of technology change and time on elasticity values of product and service.

Suppose take an example of cell phone .As technology has been greatly impact cell phone . New technology cell phone has inelastic demand .As young consumer who want to used new and advanced technology product than there is an inelastic demand .As price is higher but quantity demanded is higher because new technology has come in the market.

As time passes the demand become higher elastic. Now the cell phone technology has been used to by consumer and now the higher elastic is the demand for this particular cell phone.

This is an economic analysis which shows that as when the product technology is new in the market than it is demand inelastic with respect to price but when the product is used to in the Market than the demand is elastic with respect to price.