Consider the Following Pairs of Goods

question 135

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.gasoline over the course of a week or gasoline over the course of a year
e.personal computers or IBM personal computers

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Definitions:

Private Nuisance

A disturbance or interference with an individual's use or enjoyment of their property, without trespassing onto the property.

Farm Animals

Domesticated animals raised in an agricultural setting to produce labor and commodities such as meat, eggs, and wool.

Music

An art form consisting of sound and silence, organized in time, often combining vocal or instrumental sounds for emotional expression, entertainment, or ceremonial purposes.

Cause of Action

A set of facts sufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party.