Chapter 47, Problem 2CYU

a)

To determine

Whether the demand for an antidote by a snake-bite victim is elastic, inelastic, or unit elastic and the shape of the demand curve.

Explanation of Solution

The demand for an antidote by a snake-bite victim is inelastic because an antidote must be required for the victim as soon as possible and the victim would not care what the price of this antidote is. The shape of the demand curve would be a vertical line.

Economics Concept Introduction

Introduction: Inelastic demand refers to goods for which the demand remains the same, no matter what the price is.

b)

To determine

Whether the demand for a blue pencil by students is elastic, inelastic, or unit elastic and the shape of the demand curve.

Explanation of Solution

The demand will be elastic as students don’t care what the color of the pencil is. And, the shape of the demand curve would be a horizontal line.

Economics Concept Introduction

Introduction: Elastic demand indicates a situation where the demand can change without any change in price because, at the price, the quantity can infinite.