Consider the Following Pairs of Goods

question 18

Essay

Consider the following pairs of goods. For which of the two goods would you expect the demand to be more price elastic? Why?
a. Water or diamonds.
b. Insulin or nasal decongestant spray.
c. Food in general or breakfast cereal.
d. Petrol over the course of a week or petrol over the course of a year.

---

Definitions:

Pseudopatients

Individuals who do not have a mental illness but pretend to do so for the purpose of a study or experiment.

David Rosenhan

A psychologist best known for his study "On Being Sane in Insane Places," which challenged the validity of psychiatric diagnoses.

Depressed and Anxious

Experiencing symptoms of depression and anxiety, often characterized by persistent sadness and worry.

Reifying a Diagnosis

The act of treating an abstract diagnosis or concept as if it were a concrete, tangible object.