Activity 2l: Determining elasticities
Product | PED | PES |
Chocolate | Low (small % of income and addictive) | High (easy to store) |
Wine | Low (addictive) | High (easy to store) |
Digital Movie rentals | Low (small % of income) | High (infinite as purchase doesn’t reduce the amount available for someone else) |
New cars | High (large % of income) | Low (especially in 2022/23) due to lack of capacity |
surfboard | High (luxury) | High (easy to store once produced) |
Education | Low (necessity by law) | Will depend on the capacity of schools but as long as there is some spare capacity it will be high |
Opioid drugs | Low (addictive and may be necessary for some patients) | High (easy to store) |
coal | Low (homogenous product and necessity for many countries to generate electricity) | Low (long production periods and many coal mines may be operating at full capacity) |
Pet cats | High (luxury) but in some cases they are given away for free. It will depend if they are pedigree cats | Low (if waiting for a particular type of cat) High (if happy to purchase an abandoned cat from a shelter) |
Hairdressing services | Low (necessity for most) | High (large number of hairdressers not operating at full capacity) |