Write a short (2-3 page, double-spaced, typed) essay identifying and describing two markets of your choosing; the first characterized by an elastic demand and the second one by an inelastic demand. Indicate why your choices have the relative elasticities they do.
Hint: Use the determinants of elasticity to sort why some products are elastic and others are inelastic.
Market One: What are some of the goods you purchase in your life for which your demand is most elastic? Why?
Market Two: What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?