Contextual Analysis Flashcards
Why are restaurants are less in demand.
UberEats and Just Eat have entered the market, delivering food to the house which is much more convenient and reduces time wasted in travelling to restaurant
Why are newspapers demanded less now?
The print journalism industry is declining due to the availability of newspapers online which is less costly than printing and news is available on the phone so there is nothing extra to carry such as a newspaper. Also usage of less paper
Give examples of price elastic demand industries
Furniture stores and motor vehicles due to many competitors, making many substitutes available for the good
Give examples of price inelastic demand industries.
Electricity and water industries as they are natural monopolies so there are very few substitutes available. These are also necessities making the, price inelastic
Give examples of perfectly elastic demanded industries.
Book stores as if one raises the price, demand for goods would fall to zero as consumers buy from different stores. But this is unrealistic as the store may be situated in a convenient location
Give an example of a perfectly inelastic good
a life saving drug
Give an example of a unitary elastic good
clothing as quantity of good/service changes in proportion to its price
