Examples- Price Inelastic Demand Flashcards
1
Q
Pharmaceutical firms like Nostrum,Pfizer hiking up prices inessential medicines
A
Given patent protection and profit motivated business objective
2
Q
Oil, gas and electricity
A
Producers such as shell and BP recorded record revenues and profits in 2022 on the back of soaring energy prices in wholesale markets
Demand is highly price inelastic for these necessary commodities
3
Q
UK parcel companies
A
Reported large increases in revenue and profit in 2021 despite price rises, benefitting tremendously from online shopping trends during corona virus restrictions
