Elastic Demand?

Question

Which of the is are more elastic demand then the other?

1. Water or Diamonds
2. Insulin or nasal decongestant spray
3. Food in general or breakfast ceral
4. Gas over one week or gas over a year
5. Personal computers or IBM personal computers

Thanks for helping me out. :)

Answer 1

Elastic - a small change in price is going to change the amount sold by a lot

water - although you need water to live - we are use to getting it cheap; if you raise the price people wont flush the toilets as much ; diamonds are luxuries - rich people (and lovers) buy them, if the price doubles rich people can still afford to buy them (and lovers who want to stay together still will too)

decongestant - those that need insulin need it to survive - you'd pay the price or die

breakfast cereal - many substitutes you can switch to for breakfast, but food in general is needed to live

gas over a year - it is only after a longer term that people start to change their gas purchase habits - when they have time to plan & buy better vehicles, or start to take a bus to work, or quit bowling leaque across town - you don't do these things if price goes up one week

IBM's - you would switch brands

Answer 2

1 diamonds more elastic
2 nasal decongestant spray
3 breakfast ceral
4 gas over one week
5 ibm pc

Answer 3

hamburger has a more elastic demand. the broader you define the item, the less elastic it is... so in this example, broaden it out to food, and it will be less elastic than both.

Answer 4

condoms have the best elasticity that i know of