Question

Pick 5 products at home that are using every week e.g bread... for each draw a...

Pick 5 products at home that are using every week e.g bread... for each draw a demand graph, state the price and quantity for each product. When finish calculate the slope and write a short sentence about if the price is lower than how much dollar, than how much will be bought.
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Answer #1

Five products:A.

Bread-Elastic demand and demand curve is flat because bread has other substitutes.

Change in price(dp)=-.75-1=-.25

Change in quantity(dp)=3-2=1

Slope=1/-.25=-4

B.milk-Inelastic demand as no substitutes are available.

dp=1.25-2=.-75

dq=1-.75=.25

Slope=-.25/-.75=-.33

C.sugar-Elastic demand as substitutes are available like honey.

dp=.5-.75=-.25

dq=6-3=3

Slope=dq/dp=3/-.25=12

D.salt-no substitutes and inelastic demand

dp=2-5=-3

dq=1-.75=.25

Slope=.25/-3=-.08

E.clothes-Elastic demand as I have too much of it already and the purchase can be postponed.

dp=1-2=-1

dq=8-3=5

Slope=-5

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