Find a price at which demand is inelastic, a price at which demand is elastic, and the price at which the elasticity of demand equals 1. Refer to the graph above. Again refer to the demand curve in question 1.
Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand.
Be able to explain why you chose particular goods. A refrigerator or a television e. Electricity over the next 6 months or electricity over the next 6 years 6 . Let's suppose that the federal government follows this path and Congress passes a law imposing an additional 50-cent per gallon excise tax. Compare the economic effects of two radically different anti-drug policies. Policy A focuses on stopping the inflow of drugs into the United States.