2. Substitute: Walmart's frying pan prices raise, Sears pans sales sizzle up.
3. Elastic Demand: Skittles prices reduce dramatically, now whole country is tasting the rainbow.
4. Inelastic Demand: Electricity prices skyrocket, but no one wants to be left in the dark.
In
our modern world, almost no household could be run without electricity due to
its incredible utility. The need for electricity steams from our need for
light, utilities, and entertainment. A modern household could not function
using candles for light or without a microwave for food. Although if electricity
prices rose, many families would likely attempt to be more careful with their
use of electricity, being careful to not be wasteful or use it frivolously. However,
they would not be able to stop using it all together.
The
utility of the electricity would outweigh its price raise for its multiple uses.
One use would be the lighting of a household, because houses are not built to
utilize natural light. Therefore, electricity would be a necessity for lighting
a home and making it functional. Another use would be its ability to make food
in a microwave. Many households utilize a microwave, and without it, they would
have to change the way they eat, making life more difficult.
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