Help For Your Introductory Economics Course

There are five determinants that we can use to determine whether the demand for your product is likely to be elastic or inelastic. You should cover at least two or three of the following characteristics to receive a score of proficient (or all five to receive an exemplary) and apply them to your product to support your determination of elastic or inelastic demand. Here is an example of the application of these determinants to gasoline, as we previously covered in a discussion board assignment. The availability of close substitutes to the good : Thinking back to module two, we learned that substitutes are goods and services that can be used for the same purpose.  If consumers have few options for substitutes, as in the case of gasoline, when the price rises the quantity demanded only falls slightly.  If few substitutes are available, the demand for the good tends to be more inelastic.  The demand for a good with many substitutes tends to be more elastic. The passage of ti...