Elastic VS. Inelastic
Would
you prefer paying $63 or $35 for a pair of shoes? The obvious answer would be
$35. Working in retail, I have witnessed how prices affect the consumer. Before
working with shoes, I used to work at a clothing store. Customers would often
say how they would wait until we had a sale to purchase some items. The same
goes to working with shoes. Even if a small discount of 10% is applied, the
consumer makes the purchase. For relative elasticity of demand, I believe this
makes shoes have a slightly higher elasticity. A small change in price causes a
change in demand. For relative elasticity of supply for shoes, it has a lower elasticity.
Producers keep on selling despite if consumers buy at a lower price. Because
there will always be other consumers who will pay no matter the price.
Because
there is so much competition in the automobile world, I would say that relative
elasticity of supply and demand for cars can be slightly elastic. There are so
many cars to choose from. Producers will keep on releasing cars and not many change
the price. Consumers will keep buying the car that best suits them despite what
the price is. But consumers will buy more if the price lowers. Whereas gas is inelastic
because it has such a high demand and people buy it no matter what. The graph below shows the elasticity of a car.
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