Question

1. You are required to choose a product or a service of any industry of your choice.

2. Discuss the features and specifications of the product/service that you've chosen.

3. Explain the law of demand and law of supply of your selected product/service.

4. Explain the elasticity of demand and supply of your selected product/service

Answer 1

A)I have chosen toothpaste because it is of daily use and it is a kind of necessity.

B) features:

1. It is a necessity.

2. There are no other brands in the market that is there is no close substitute.

3. Consumer will use even if price changes.

3.) Law of demand here states that when there is rise in price, quantity demanded does not change.

Law of supply states that when there is rise in price of inputs supply will not be affected much.

4) elasticity of demand here will be inelastic because by 1% change in price, quantity demanded will not be of much change.

Elasticity of supply will be inelastic because by 1% change in price of inputs there will be not much change in supply of toothpaste.