Document 3: Analyzing Primary Source "The current prices of meat, milk and butter, wool, tobacco, imported fruits, and of ordinary medical attendance, are such that every variation in price makes a great change in the consumption of them by the working classes, and the lower half of the midle classes; but the rich would not much increase their own personal consumption of them however cheaply they were to be had. In other words, the direct demand for these commodities is very elastic on the part of the working and lower middle classes, though not on the part of the rich.. The current pisces of wall-fruit, of the better kinds of fish and other moderately expensive luxuries are such as to make the consumption of them by the middle class increase much with every fall in price; in other words, the middle class demand for them is very elastic: while the demand on the part of the rich and on the part of the working class is much less elastic." -Alfred Marshall, Principles of Economics, 1895 1. Citing Text Evidence: According to Marshall, which products had "very elastic" demand among working-class consumers? Which products had inelastic demand among the same group? 2. Analyzing Central Ideas: Why do you think the demand for luxuries was inelastic for the very poor during Marshall's time?
Document 3: Analyzing Primary Source "The current prices of meat, milk and butter, wool, tobacco, imported fruits, and of ordinary medical attendance, are such that every variation in price makes a great change in the consumption of them by the working classes, and the lower half of the midle classes; but the rich would not much increase their own personal consumption of them however cheaply they were to be had. In other words, the direct demand for these commodities is very elastic on the part of the working and lower middle classes, though not on the part of the rich.. The current pisces of wall-fruit, of the better kinds of fish and other moderately expensive luxuries are such as to make the consumption of them by the middle class increase much with every fall in price; in other words, the middle class demand for them is very elastic: while the demand on the part of the rich and on the part of the working class is much less elastic." -Alfred Marshall, Principles of Economics, 1895 1. Citing Text Evidence: According to Marshall, which products had "very elastic" demand among working-class consumers? Which products had inelastic demand among the same group? 2. Analyzing Central Ideas: Why do you think the demand for luxuries was inelastic for the very poor during Marshall's time?
Chapter1: Making Economics Decisions
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Transcribed Image Text:Document 3: Analyzing Primary Source
"The current prices of meat, milk and butter, wool, tobacco, imported fruits, and of ordinary medical attendance,
are such that every variation in price makes a great change in the consumption of them by the working classes,
and the lower half of the midle classes; but the rich would not much increase their own personal consumption of
...
..
them however cheaply they were to be had. In other words, the direct demand for these commodities is very
elastic on the part of the working and lower middle classes, though not on the part of the rich.. The current
pisces of wall-fruit, of the better kinds of fish and other moderately expensive luxuries are such as to make the
consumption of them by the middle class increase much with every fall in price; in other words, the middle class
demand for them is very elastic: while the demand on the part of the rich and on the part of the working class is
much less elastic."
-Alfred Marshall, Principles of Economics, 1895
1. Citing Text Evidence: According to Marshall, which products had "very elastic" demand among
working-class consumers? Which products had inelastic demand among the same group?
2. Analyzing Central Ideas: Why do you think the demand for luxuries was inelastic for the very poor during
Marshall's time?
Expert Solution
Step 1
Elastic goods are those goods whose quantity demanded changes more than a change in prices whereas inelastic goods are those goods whose quantity demanded changes less than a change in prices.
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