Inelastic: Reggae, Electricity And Medical Procedure

Satisfactory Essays
The three goods for which the demand is inelastic is gasoline, electricity and medical procedure. The reason why they are inelastic is because if the prices for these three goods increase significantly the consumers buying behavior is unchanged and the quantity demand is not affected. Furthermore, these good would never go on sale because consumers have fewer options and it a necessity that people can’t live without. I don’t see a reason for putting gasoline for example on sale because if you lower the price of this good nothing will change everything stays the same. I think the relationship between elasticity and total revenue does help me understand why some goods go sale and why others don’t because elasticity looks at the impact of price
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