elastic supply? Thanks to those who answered my first question.
2007-07-29 15:50:53 · 3 answers · asked by Rexel 2 in Social Science ➔ Economics
Air at service stations. See how many customers are willing to pay to fill their tyres at any price.
Elastic supply? Doesn't exist. Maybe a kinked supply curve at the current price, but not elastic.
2007-07-29 18:48:09 · answer #1 · answered by jemhasb 7 · 0⤊ 0⤋
i disagree with above there is a limit to how much someone will pay for air for their tyres certainly less than the cost of a new tyre perfectly elastic means that the same amount will be demanded at any price, this is not true for anything except perhaps an operation that is vital for life perfectly elastic doesnt exist if the price was to drop no-one owuld want the product if it went up the same would happen this would not happen its a theory not applicable to real world a lot of economics is purely hypothetical
2007-07-31 07:56:19 · answer #2 · answered by pancakemaster 2 · 0⤊ 0⤋
When the demand for a good is perfectly elastic, any increase in the price, no matter how small, will cause demand for the good to drop to zero. I don't think there is any good that behaves in that way.
2016-05-17 08:37:22 · answer #3 · answered by scarlett 3 · 0⤊ 0⤋