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Elasticity: How Markets React to Price Changes
Elasticity varies across goods and services, largely due to factors involving the price of the good, availability of substitutes, and whether a good is a necessity. Elasticity also varies across consumer groups and by country.
Food is necessary for survival, and thus an inelastic good. Yet, elasticity varies by country; when the price of food rises, poorer countries reduce consumption more than rich countries.
Alternative fuel vehicles have grown in popularity. The most popular type is E85 (ethanol) vehicles, though electric cars have been increasing in sales.
The By the Numbers — Do It Yourself! Lab Activity will look more closely at alternative fuel vehicles in the United States.
The By the Numbers — Do It Yourself! Lab Activity will look more closely at alternative fuel vehicles in the United States.
Don’t like paying for parking? You’re not alone. When the price of downtown parking in major cities increased 10%, people on average:
Used that parking lot 5.4% less.
Used farther parking lots 8.3% more.
Used park & ride 3.6% more.
Rode public transit 2.9% more.
Reduced the number of trips downtown 4.6%.
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