Please do not use references. This assignment is simply based off what is "in your own head".
Impracticality of Polar Cases of Elasticity
Section 2 introduces polar cases of elasticity – perfect elasticity and perfect inelasticity – and provides examples of each. Examples of elastic goods included pizza, bread, books, and pencils. Examples of inelastic goods included diamond rings and housing in prime locations. Examples of nearly perfectly inelastic goods may include electricity, water, and stadium seating on the supply side. For this assignment, your task is to:
- Identify one good that might be considered perfectly elastic. Then explain why this good might be considered perfectly elastic.
- Identify one good that might be considered perfectly inelastic. Then explain why this good might be considered perfectly inelastic.
- Finally, the text mentions that these polar cases of elasticity are somewhat unrealistic in the real world. Consider one of the goods you offered as an example of perfect elasticity or inelasticity. Is there a scenario where real-world conditions may mean they do not act like a perfectly elastic or inelastic good?