October 9, 2007

Elasticity

Posted in elasticity at 4:04 pm by davidprudente

As we learn about elasticity, think about what makes products necessities or luxuries. Have you ever said “I have to have that!” about something, when in fact you didn’t really need it?

Advertising can effect elasticiy of demand. (You wont find this stuff in your text book or on the AP Exam.) Here’s an example from Molson of an ad that has decreased the price elasticity of demand by appealing to people’s sense of belonging.

Would you think that Molson is an elastic or inelastic product? How can advertising influence whether a product has elastic or inelastic demand?

Thanks to all the other AP Bloggers (Jason Welker, Ms. Stephens) for the pointer.

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1 Comment »

  1. Jack Bowmaster said,

    That was so funny when the guy said his name was Joe and when he said that beavers are awesome.

    Jack


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