Categorize products

Please identify the following products/services whether its demand is elastic or inelastic and give a brief
explanation for each demand. The lecture on factors that determine the price elasticity of demand could be
helpful.
If you are selling/providing each of these products/services, would you raise its price up or lower the price
down to increase the total revenue for each product/service? Please also briefly explain.
The demands for these products have different income elasticity as well. Please categorize them with regard to
income elasticity whether it is an inferior or normal (necessity or luxury) good. Please provide a brief
explanation.
Products:
Legal service
Fast food
New vehicles
Used vehicles
Lawn-care service
Milk (not about the brands)
Gasoline
Cigarettes
Lottery tickets

Sample Solution

ACED ESSAYS