Use the concept of elasticity to explain why you would pay $2.50 for a small candy...
Use the concept of elasticity to explain why you would pay $2.50 for a small candy bar and $3.50 for a bottle of water at the airport but you’d never consider paying that much ordinarily.
Homework Answers
The concept of this lies behind the INELASTIC DEMAND.
According to the meaning of inelastic demand, it is the low or no change in quantity demand when there is a change in price
It is irrespective of change in price
So here at the Airport, due to the limited availability of shops like candy or water bottle, the demand becomes inelastic because people will not look at the price before buying in case of inelastic demand
But outside the airport due to the large availability of shops, the demand becomes elastic and people become price sensitive
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Use the concept of elasticity to explain why you would
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