Need Help with Economic work, its about ELASTIC DEMAND ! ASAP?

Question

In each of the following cases, indicate the item with the more elastic demand

1. the demand for salt vs. the demand for morton's salt

2. the demand for micro textbooks at the college bookstore this week vs the demand for micro textbooks in the college book store for this academic year

3. the demand for a house vs the demand for a hotdog

4. the demand for insulin by a diabetic vs the demand for snow skis

5. the demand for candy at the movie theater vs the demand for candy at the 7-11

If you can, please explain for me!

Answer 1

1. the demand for salt vs. the demand for morton's salt

Demand for Morton's salt in general will be more elastic as there are alternative brands but common salt being a daily necessty will be rather inelastic.



2. the demand for micro textbooks at the college bookstore this week vs the demand for micro textbooks in the college book store for this academic year

demand is more elastic over a longer period a than for a short period: so demand for micr-texbooks will be more elastic at the college bookstore for this academic year than the demand for the same this week.



3. the demand for a house vs the demand for a hotdog

The demand for hotdog will be more elastic than the demand for houses because people plan for houses based on future earnings over a long period.



4. the demand for insulin by a diabetic vs the demand for snow skis

Demand for snow skis will be more elastic than the demand for insulin by a diabetic because life without insuln is a great immediate danger for the diabetic.



5. the demand for candy at the movie theater vs the demand for candy at the 7-11



demand for candy at the 7-11 is more more elastic than the demand for candy at movie theatre will be less elastic because at the movie theatre people gets enjoyment from the movie primarly but at 7-11 they are more detrmined about purchasing candys as part of the enjoyment.

Answer 2

I'm guessing you don't need the formula to compute this since you don't have it charted with numbers. It pretty much says as price increases sales will decrease and items that are not needed are more elastic. Morton's salt, demand for college texts for this year, three is tricky, demand for insulin, candy at the movie theater are the items with more elastic demand. If the price of salt increases people will still need salt but are less likely to pay more for a brand name. Students wil be more likely to buy used textbooks from last year than pay full price for new texts. Diabetics need insulin regardless of price. People will forgo the more expensive candy for the cheaper ones. Number three is argueable. I would say the house is the most elastic because it is a volatile market. People will still eat hotdogs so long as the price doesn't rise significantly.

Answer 3

1. Morton's Salt

2. Micro textbooks this week

3. Hot dog (This one can go either way...I mean it depends if the person who is demanding the house already has one. A shelter has very inelastic demand, but a second home is elastic)

4. Snow skis

5. Candy at the 711.

Answer 4

1. Morton's salt. There are other brands.

2. Micro textbooks now. Nobody needs them yet (unless it's summer school).

3. Hotdog

4. snow skis

5. candy at the 7-11