ECON1101-CHAPTER 5
Based on the passage above make sure that you are responding to the following questions in your video:
Based on your reading of Chapter 5: Elasticity, and the article above, what factor would you think determines how firms can pass on costs or retain profit shares from sales of a product when key input prices fluctuate?
The article above mentions the product Aspirin and Coffee.
Is Aspirin likely to have an elastic or inelastic Demand Curve?
Is Coffee likely to have an elastic or inelastic Demand Curve?
Looking at the Figure above, what do you conclude:Which demand curve, elastic or inelastic, is more beneficial to consumers in terms of Price decrease? Why?
Looking at the Figure above, what do you conclude:
Which situation could lead to a fall in sales revenue for producers with the discovery of new technology? Why are producers still inclined to implement new technology in the production process?
Since the demand for food is generally inelastic, which of the two graphs would you apply to the market for agricultural products? explain what would happen to prices and quantity
if there is a surge in production
Due to poor weather or other factors supply of crops decreases.