Question

could you apply the concept of elasticity to the things you sell at work? Or, anything that you buy? What do you buy that is price inelastic vs. what do you buy that is price elastic?​

Answer 1

Ans:

Yes, we appy the concept of elasticity to the things we sell at work.when we are making a decision on pricing or analysing the growth in sales, we analyse how the demand for the product is effected in which we are apply the concept of elasticity.

when buy a product we compare the price with the substitutes and based on which we make a decision.In this case we are applying the concept of elasticity.

Products with price inelastic are which have few substitutes.Price inelastic goods purchased are petrol,salt,water,cigarettes.Price elastic goods purchased include food,clothes,accessories and automobiles.