Saturday, April 13, 2013

In response to Katie Longchamp's post

Can you think of some other products that have an inelastic demand?  Do you believe the consumer has any control over prices of products with an inelastic demand?  Why or why not?

Another example of an inelastic demand is heat. People need heat in order to stay warm during the winter, and sometimes the spring and fall. No matter what the price of heat is, society still finds it a necessity to pay for it in order to survive. I do not believe that the consumer has control over the price of heat. The more people that need heat in their homes, the more that it is going to cost the company to supply the heat. 

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