Xeco 212 Appendix B

929 WordsJan 28, 20134 Pages
Associate Level Material Appendix B Price Elasticity and Supply & Demand Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity |Event |Market affected by event |Shift in supply, demand, or both. |Change in equilibrium | | | |Explain your answer. | | |Frozen orange crops in California…show more content…
However, other vehicles are being made such as hybrids that use less gas as well as natural gas or biodiesel, which may change how inelastic this commodity is. There are substitutes but the primary infrastructure is designed with fossil fuel delivery in mind. Almost all vehicles run on gas it is needed with little to no substitute • Gasoline sold at a local gasoline station • Elastic, With the local gas stations there is competition for business as the commodity itself has little to no substitute the option of whom to buy the gas from now becomes what is elastic about this precious resource. The necessity of the good is paramount the prices of the gas at particular gas stations become the substitutes, almost phantom products if you will. • Hotel rooms for people planning a vacation • Elastic, vacation time is most certainly a luxury and although at times needed for mental sanity one can live their entire life without one and still be fine. As with the local gas station comparison-shopping is king, which becomes the substitute for one hotel versus another. • Hotel rooms for people on business to meet an important client • Elastic/Inelastic, depending on how important the contract is or what the client has to bring to the table the hotel may not be and option. But

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