Chapter 9R, Problem 4CTQ

To determine

Whether the demand for software programs, cameras, notebook paper, peaches, textbooks, all carbonated beverages, A&W root beer is elastic or inelastic

Explanation of Solution

The demand for software programs is elastic because the decrease in the price of software would increase the number of units that are demanded.

The demand for cameras is elastic because people will prefer to buy more when the price of the camera is low but they decrease their purchasing when its prices are high in the market.

The demand for notebook paper is inelastic because the notebook is a necessity for the student, a student use notebook paper according to the requirement which would not increase if the price declines or would not decrease if the price is high.

The demand for peaches is elastic because people will avoid buying peaches when the price is high and buy more when the price is low.

The demand for textbooks is inelastic because the textbook is the major requirement for the student and they use textbooks according to their need, they will not buy less if the price rises, and not buy more if the price declines.

The demand for all carbonated beverages is less elastic than the demand because the price change impacts the demand very less if there is a large change in price then the change in demand would be less.

The demand for, A&W root beer is elastic because it is not a necessity and people start purchasing less when its price goes up.

Economics Concept Introduction

Introduction: Price elasticity of demand refers to the measure of how demand is sensitive to price or how a change in price affects the change in demand.