Gas and Soft Drinks Essay

1- That would be inelastic. Even though hoi polloi discover about the rising charges, that doesnt stop pile from stopping by the gas pumps to fill up. bouncy is more homogeneous candy bars or soda if wrongd at 50 cents, there will be high look at, scarce if the price rises to 2 dollars, the get will go down. Because there ar many alternative brands for Coca Cola that invite more or less the same taste. When the price of coca cola rises, demand decreases because devourrs will father alternative brands that taste the same but at a lower price, therefore demand is elastic. adopt for soft absorb as a entirely is inelastic because whether or not the price attachs/decreases, demand would not decrease/increase by a whole lot, since its the consumers preferred choice of drinks (just like milk is inelastic). Just because the price increases, doesnt incriminate that consumers will start to drink water all the time, theyll just drink less amounts of soft drink than usual (and vice versa). Elastic means by increasing the price, the demand for that product decreases as well.For character when the price of lamb increases, mint will evoke to chicken. We say the demand for lamb is elastic. Inelastic means, no matter how much the price changes, people alleviate use it and the demand doesnt change a lot. Same as your example, Although the oil price increases, but the demand for oil didnd decrease. 2-petrol is also interchange from especialy designed petrol pumps which costly to buld and operate . in the other hand setback and soft change drinks is interchange everywhere and can be sold to anyway and any gae. patrol selling you mustiness be an adult and hold a drivers licience . louse up in the long term has higher catch of demand. meaning since in short term people do not have much choice,so they consume whatever is available at whatever price. 3- the coke is advertosed on over hundered tv channels round the world and it is the best known trademark in the world is sold in about whizz hundred and forty countries to 5. 8 billion people in eight different languguages .The shroud price elasity of demand would be for the coca cola since the demand for it is growing A third example of cross-price elasticity is between Coke and Pepsi. If the price of Coke increases by 10%, then the demand for Pepsi will increase by 20%.This results in a cross price elasticity between the two of 2. like the example above, these two would be substitues since the cross-price elasticity is greater than zero. http//mbaecon. wikispaces. com/file/view/cross_2. gif/30502983/cross_2. gif.