The Cost of Inelastic Goods
Many goods that are inelastic in terms of demand are ones that are essential or, in other words, necessary to one's self. There are several examples: basic foods, gasoline, or even medicine. I was interested in how producers can manipulate the prices of these goods and how the total revenue can change over time because those goods are inelastic. The first example I thought of was insulin. Considered inelastic because, without it, those who are diabetic might physically suffer, I looked at the price trends in the past couple of years. Just as I predicted, the price has been rising dramatically in the past decade or so as producers are taking advantage of the consumers' essential need for this good. There are about 7.4 million Americans that use insulin and many struggle to pay the costs of this increasingly expensive drug. So, while rising prices benefit insulin manufacturers, those same prices come at a serious cost for patients as the demand for insulin is inelastic. Other...
It seems as though The global wireless headphone market has been spurred on recently by the creation of the Apple "Airpods". Nowadays having Airpods is more a status symbol, given their high price. From cars, to shoes, it seems like earphones are the next market to be tapped into in terms of fashion statements. Conviency is another huge aspect. With each huge tech company relaeasing their own earphones, they make them compatabile to only their own system. this means that you must follow one brand and stick with it.
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