ECO 561 ECO561 ECO/561 Week 1 Discussion Questions 1

Price elasticity of demand

Different products have different elasticities. Heart medication, for example, is inelastic and corn is elastic. Find a product that has not already been selected and describe the price elasticity and income elasticity. How much control might an organization have over pricing based on a product’s elasticity? Discuss which of the elasticity rules you used to determine your answer.