Consider an example of a product that has a completely non-elastic demand at any price. Within a specified price ECO404 Handouts PDF range? There are no products in this category. Otherwise, prices can rise indefinitely without reducing demand. People do not have an unlimited income.
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Very narrow price range, non-replaceable raw materials, oil, and water which would likely have the highest cross-elasticity of demand: two brands of tea, or tea and coffee? As the closest alternative to two brands of tea, tea, and ECO404 Handouts PDF coffee. The supply tends to be more elastic in the long run than in the short run.
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Suppose there is a tax Taxes are levied on assets that are already tax-free. prices can rise indefinitely without ECO404 Handouts PDF reducing demand. people do not have an unlimited income.
As the closest alternative to two brands of tea, tea, and coffee. The supply tends to be more elastic in the long run than in the short run.
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