Choose a product that you regularly purchase and decide whether the demand for the product is
elastic, inelastic or unit elastic based on your knowledge of price elasticity of demand. Explain the
factors that you think cause the good or service to be elastic, inelastic or unit elastic in detail
(related to the determinants of price elasticity of demand). Also, describe the shape of the demand
curve and explain what producers in this industry should do to their prices to increase their total
revenue. Please use an original example (not one that has been used in the textbook/power points)
or you will lose points
Sample Solution
